Transactions

On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:

a. Opened a business bank account with a deposit of $33,000 from personal funds.

b. Purchased office supplies on account, $1,890.

c. Received cash from fees earned for managing rental property, $5,380.

d. Paid rent on office and equipment for the month, $2,320.

e. Paid creditors on account, $860.

f. Billed customers for fees earned for managing rental property, $4,300.

g. Paid automobile expenses (including rental charges) for the month, $520, and miscellaneous expenses, $260.

h. Paid office salaries, $1,630.

i. Determined that the cost of supplies on hand was $1,120; therefore, the cost of supplies used was $770.

j. Withdrew cash for personal use, $1,550.

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)

2. Owner's equity is the right of owners to the assets of the business. These rights are by owner's withdrawals and expenses. 3. Determine the net income for June