Question

Transactions, Financial Statements On May 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. Pald creditor on account, $2,150. d. Earned sales commissions, receiving cash, $34,710. e Paid rent on office and equipment for the month, 56,800. f. Withdrew cash for personal use, $11,000. 9. P o mobile expenses (including rental charge) for the month $3,260, and miscellaneous expenses, $1,500 h. Paid office salaries, 14.100. Determined that the cost of supplies on and 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 negative numbers - Liabilities + Owner's Equity Accounts Pat Glenn, Pat Glenn, Sales Office Salaries Auto Supplies Miscellaneous Cash + Supplies Payable Capital Drawing Commissions - Rent Expense Previous Check My Work 2 more Check My Works remaining

Answer 1

Assets = Liabilities + Owner's Equity Accounts Miscellaneous Pat Pat Glenn, Glenn, Sales Salaries Rent | Auto Supplies + + Capital - Drawing Commissi-Expense - Expense - Expense - Expense ons 34000 Cash + Supplies Payable - Expense 34000 3400 3400 | 34000 0 0 1 0 0 0 1 0 22 A 23 B 24 Bal. 25 C 26 Bal. 27 D 28 Bal. 29 E 30 Bal. 3400 3400 -2150 1250 3400 | 34000 | 0 1 0 0 0 1 0 0 34710 34710 3400 1250 34000 0 0 0 34000 -2150 31850 34710 66560 -6800 59760 -11000 48760 -4820 43940 -4100 39840 0 -6800 -6800 3400 1250 34000 34710 0 0 0 -11000 - 11000 3400 1250 34000 34710 -6800 -3260 -3260 - 1560 -1560 3400 1250 34000 -11000 34710 -6800 0 32 Bal. 33 G 34 Bal. 35 H 36 Bal. 37 38 Bal. 39 0 -4100 -4100 1250 34000 -1100034710 -6800 -3260 -1560 3400 -2250 0 -2250 -2250 39840 1150 1250 34000 - 11000 34710 -4100 -6800 -3260 -1560

Half Moon Realty Income Statement For the month ended July 31,2019 34,710 Revenues; Sales Comission Less Expenses Salaries Expense Rent Expense Auto Expense Supplies Expense Miscellaneous Expense Total Expenses Net Income 4,100 6,800 3,260 2,250 1,560 17,970 16,740 Half Moon Realty Statement of Owner's Equity For the month endded July 31, 2019 Pat Glenn, Capital July 1, 2019 Investment on July 1, 2019 34,000 Add Net Income 16,740 Less Pat Glenn, Drawings (11,000) Increase in capital 39,740 Pat Glenn, Ending Capital 39,740

Half Moon Realty Balance Sheet As on July, 31 Assets Cash Office Supplies Total Assets 39,840 1,150 40,990 1,250 Liabilities & Owner's Equity Accounts Payable (1800-1350) Owner's Equity Pat Glenn, Capital Total Liabilities & Owner's Equit 39,740 40,990