Question

Transactions; Financial Statements On July 1, 2019, Pat Glenn established Half Moon Realty, Pat completed the following transactions during the month of July! a. Opened a business bank account with a deposit of $34.000 from personal funds. b. Purchased office supplies on account, $3,400. C. Paid creditor on account, $2,150. d. Earned sales commissions, receiving cash, $34,710. e. Pald rent on office and equipment for the month, $6,800 f. Withdrew cash for personal use, $11,000. 9. Paid automobile expenses (including rental charge) for the month, $3,260, and miscellaneous expenses, $1,560. h. Paid office salaries, $4,100. 1. Determined that the cost of supplies on hand was $1,150; therefore, the cost of supplies used was $2,250. 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. If required, enter negative values as negative numbers.

Answer 1

Half Moon Realty Accounting Equation For the Month ended July 31 2019 Owner's Equity = Liabilities + Assets + Supplies = Accounts + Pat Glenn, Pat Glenn, + - Rent - Off. Salaries Supplies - Cash Sales Misc. Auto Capital = Payable + Drawing + Commission - Expense Expense Expense - Expense - Expense %3D 34000 34000 a 3400 3400 Bal 34000 3400 3400 34000 -2150 -2150 C. Bal 31850 3400 1250 34000 d. 34710 34710 Bal 3400 66560 1250 34000 34710 -6800 6800 Bal 1250 34710 59760 3400 34000 6800 -11000 11000 Bal 1250 34000 48760 3400 11000 34710 6800 +. 3260 -4820 1560 Bal 34710 43940 3400 1250 34000 11000 6800 3260 1560 -4100 4100 Bal 34000 39840 3400 1250 11000 34710 6800 4100 3260 1560 -2250 2250 Bal 1250 39840 1150 34000 11000 34710 6800 4100 3260 2250 1560 40990 40990

Balance sheet Income Statement For the Month ended July 31 2019 As at 31.7.2018 Sales Commission 34710 Assets Cash Expenses: 39840 Supplies 1150 Rent Expense Offic Salaries Expense 6800 4100 Total Assets 40990 Auto Expense 3260 Supplies Expense Liabilities 2250 Accounts Payable Misc. Expense 1560 1250 Total Expenses 1250 17970 Owner's Equity Net Income 16740 Pat Glenn, Capital 39740 Statement of Owner;s Equity Total Liabilities & Equity 40990 For the Month ended July 31 2019 Beginning Balance Additions during the year 34000 34000 Net Income 16740 50740 -11000 Drawings Ending Balance 39740