Transactions

On April 1 of the current year, Ana Bella established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of RM45,000 from personal funds. b. Purchased office supplies on account, RM2,000 c. Received cash from fees earned for managing rental property, RM8,500 d. Paid rent on office and equipment for the month, RM5,000 e. Paid creditors on account, RM1,375 f. Billed customers for fees earned for managing rental property, RM11,250 g. Paid automobile expenses (including rental charges) for month, RM840, and miscellaneous expenses, RM900 h. Paid office salaries, RM3,600 i. Determined that the cost of supplies on hand was RM550; therefore, the cost of supplies used was RM1,450 j. Withdrew cash for personal use, RM2,000

Instructions

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets = Liabilities + owner's equity Account cash + account receivable + account supplies = account payable + Ana Bella, Capital - Ana Bella drawing + fees earned - rent expense - salaries expense - supplies expense - auto expense - misc expense

2. Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals nd expenses decreased owner's equity.

3. Determine the net income for April

4. How much did April's transactions increase or decrease Ana Bella's capital?