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 $30,000 from personal funds.
2. Purchased office supplies on account, $1,800.
3. Received cash from fees earned for managing rental property, $10,000.
4. Paid rent on office and equipment for the month, $4,500.
5. Paid creditors on account, $1,250.
6. Billed customers for fees earned for managing rental property, $16,800.
7. Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.
8. Paid office salaries, $4,000.
9. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.
10. Withdrew cash for personal use, $7,500.

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)

Assets

=

Liabilities

+

Owner's Equity

Item

Cash

+

Accounts Receivable

+

Supplies

=

Accounts Payable

+

Chad Wilson, Capital

-

Chad Wilson, Drawing

+

Fees Earned

-

Rent Expense

-

Salaries Expense

-

Supplies Expense

-

Auto Expense

-

Misc. Expense

a.

b.

Bal.

c.

Bal.

d.

Bal.

e.

Bal.

f.

Bal.

g.

Bal.

h.

Bal.

i.

Bal.

j.

Bal.