Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September: a.
Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September: a. Opened a business bank account with a deposit of $43,000 in exchange for common stock. b. Purchased office supplies on account, $2,840. C. Received cash from fees earned for managing rental property, $8,090. d. Paid rent on office and equipment for the month, $3,490. e. Paid creditors on account, $1,290. f. Billed customers for fees earned for managing rental property, $6,470. g. Paid automobile expenses for month, $780, and miscellaneous expenses, $390. h. Paid office salaries, $2,460. i. Determined that the cost of supplies on hand was $1,680; therefore, the cost of supplies used was $1,160. j. Paid dividends $2,330. 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) 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 Auto Item Cash + Accounts Receivable + Supplies = = Accounts Payable + Common Stock Dividends + Fees Earned Rent Expense Sal. Expense Supp. Expense Misc. Expense Item Expense a. 43,000 a. b. 2,840 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. 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. 4. How much did September's transactions (a-j) increase or decrease retained earnings? by $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started