Transactions

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:

1. Opened a business bank account with a deposit of $25,000 from personal funds.
2. Purchased office supplies on account, $2,080.
3. Received cash from fees earned for managing rental property, $5,910.
4. Paid rent on office and equipment for the month, $2,550.
5. Paid creditors on account, $950.
6. Billed customers for fees earned for managing rental property, $4,730.
7. Paid automobile expenses (including rental charges) for the month, $570, and miscellaneous expenses, $280.
9. Paid office salaries, $1,800.
10. Determined that the cost of supplies on hand was $1,230; therefore, the cost of supplies used was $850.
11. Withdrew cash for personal use, $1,700.

Required:

1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300)

Transactions On June 1 of the current yess Chad Wilson established business to manage rental property. He completed the following transactions during June: .. Opened a business bank account with a desest of $25.000 from personal funds b. Purchased office supplies on ccount, $2,080. Received cash from fees earned for managing rental property, 55 910 d. Paid rent on office and equipment for the month $2 550 e Paid credors on sot $950. f. Billed customer for forsened for managing rental property, $4.730. Paid automobile expenses (including rental charges for the month, $570, and miscellaneous expenses $280. h. Paid office salaries $1.800 1. Determined that the cost of supplies on hand was $1.230. therefore, the cost of supples used was $850. j. Withdrew cash for personal, 51,700 Required: 1. Indicate the effect of esch transaction and the balances after esch transaction For those boxes in which no encry is required, leave the box blank For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Liabilities Accounts Accounts Chad Wilson Chad Wilson Item Cash Supplies + Fees Earned Receivable Payable Capital Drawing 25.000 25.000 Owner's Equity Salaries Expense Rant Espana Supplies Expense Auto Expense - Misc. Expense b. 2.000 2,080 25.000 2.080 2.080 25.000 5,010 5,910 30,010 30.010 2,080 2,080 25.000 5.910 -2.550 Bal. 2.080 2.080 25,000 5.910 2.550 28.350 28.300 -250 -950 27.410 2.000 1.130 25.000 5.910 -2.550 f 4,730 4.730 27,410 4,730 2,080 1,130 25,000 10.640 -2,550 -550 -570 -280 -570 -280 24,700 -570 -280 10.640 -570 -280 20.500 4.730 2.080 1.130 25.000 10.610 -2.350 h. -1,800 -1,800 4,730 2.000 1.130 25.000 10.640 -2.550 -1.800 i. -850 -850 Bal. 24,760 4,730 1.230 1,130 25.000 -2,550 -1,800 -850 -1.700 -1.700 23,000 4,730 1.230 1.130 25,000 -1.700 10.040 -2.550 -1,800 -830 2. Owner's equity is the right of owners to the assets of the business. These nights are increased by owner's investments and revenues and decreased by owner's withdrawals and expenses. 3. Determine the nat income for June 4.590 -570 -280 4. June's transactions (1) increased or decreased Chad Wilson's capital to? Increased to $31,200 X 1. Review Transactions (a to summarized on page 14 in the text Recal that the effect of every transaction must modify the accounting equation yet cause to remain in balance overal 2 Owner's equity represents the rights of owners. Additional investments and revenues increase the rights of the owner. When the owner removes funds (a withdraw and pays expenses, the owner's equity decreases 3. Net Income the wes of revenues over expenses 4. Beginning Owner's Equity Investments - Withdrawals Revenue Expenses Ending Owner's Equity