Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property She completed the following transactions during September Opened a business bank account with a deposit of $31,000 in exchange for common stock Purchased office supplies on account, $3,010 Received cash from fees earned for managing rental property, $8,470 Paid rent on office and equipment for the month, $3,700 Paid creditors on account, $1,370 Billed customers for fees earned for managing rental property, $6,860 Paid automobile expenses for month, $820, and miscellaneous expenses, $410 Paid office salaries, $2,610 Determined that the cost of supplies on hand was $1,780 therefore, the cost of supplies used was $1,230 Paid dividends $2,470 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 Stockholders' Equity Item Cash Accounts Receivable Supplies Accounts Payable Common Stock Dividends Fees Earned Rent Expense Sal Expense Supp Expense Auto Expense Misc Expense Item a a b b Bal Bal c c Bal Bal d d Bal Bal e e Bal Bal f f Bal Bal g g Bal Bal h h Bal Bal i i Bal Bal j j Bal Bal 2 Stockholders' equity is the right of stockholders' to the assets of the business These rights are by issuances of capital stock and revenues and by dividends and expenses 3 Determine the net income for September

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 13, 2024

Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September: Opened

Transactions

On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September:

Opened a business bank account with a deposit of $31,000 in exchange for common stock.
Purchased office supplies on account, $3,010.
Received cash from fees earned for managing rental property, $8,470.
Paid rent on office and equipment for the month, $3,700.
Paid creditors on account, $1,370.
Billed customers for fees earned for managing rental property, $6,860.
Paid automobile expenses for month, $820, and miscellaneous expenses, $410.
Paid office salaries, $2,610.
Determined that the cost of supplies on hand was $1,780; therefore, the cost of supplies used was $1,230.
Paid dividends $2,470.

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

Stockholders' Equity

Item

Cash

Accounts Receivable

Supplies

Accounts Payable

Common Stock

Dividends

Fees Earned

Rent Expense

Sal. Expense

Supp. Expense

Auto Expense

Misc. Expense

Item

Bal.

2. Stockholders' equity is the right of stockholders' to the assets of the business. These rights are by issuances of capital stock and revenues and by dividends and expenses.

3. Determine the net income for September.