Question

Transactions On September 1 of the current year, Joy Tucker establish a business to manage rental property.

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 $36,000 in exchange for common stock. b. Purchased office supplies on account, $1,800 c. Received cash from fees earned for managing rental pro d. Paid rent on office and equipment for the month, $5,00 e. Paid creditors on account, $1,375 f. Billed customers for fees earned for managing rental property, $9,500 Paid automobile expenses for month, $840, and miscellaneous expenses, $960 Paid office salaries, $3,600 l. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450 j. Paid dividends, $3,000 Required: 1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is requred, leave the box blank For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) - Liabilities + Stockholders' Equity SuppExP Expense ntsstock Common - Dividends + Auto_ Expense Misc. Item Expense Item Cash + +Supplies Accounts Receivable Paya Earned Expense 36,00 36,00 1,800 v 1,800 Bal. 36,00 1,800 1,800 36,00 Bal 6,750 6,750 1,800v 1,800 36,00 6,750 Bal Bal. 37,75 1,800 1,800 36,00 6,750 5,000 x Bal 36,37 1,800 425 36,00 6,750 5,000 x Bal 9,500 9,500 al. 36,379,500 1,800 Bal. 34,57 9,500 1.800 l 30,979,500 1,800 425 36,00 5,000x Bal 960 x g 1,800 425 36,00 5,000x 960 x Bal 3,600 3,600 425 36,00 5,000x 960 x Bal 1,450 X 1,450 | 30,97 9,500 350 425 36,00 5,000x 3,600 1,450X 960 x Bal 27,979,500350 425 36,00 5,000x 3,600 1,450X 960 x Bal

Answer 1

Indicate the effect of each transaction as follows: 2 A B C D E F J K L M Y Assets G H I = Liabilities + Accounts Payable N O P Q R S T U V W X Stockholders' Equity Fees | Rent | Sal. Supp. || Auto | Misc. Earned Expense Expense Expense Expenses Expense Accounts Receivable" + Supplies Common stock Dividends + Item 36000 a. 1800 1800 1800 1800 | 36000 Bal. c. 6750 6750 1800 1800 | 36000 -5000 -5000 Bal. d. Bal. 1800 36000 6750 Item Cash 2 3 a. 36000 4 b. 5 Bal. 36000 6 c. 6750 7 Bal. 42750 8 d. -5000 9 Bal37750 10 e. -1375 11 Bal. 36375 12 f. 13 Bal. 36375 14 g. -1800 15 Bal. 34575 16 h. -3600 17 Bal. 30975 18 i. 19 Bal. 30975 20 j. -3000 21 Bal. 27975 1800 -1375 425 le. 1800 36000 -5000 Bal. 9500 9500 6750 9500 16250 1800 425 36000 -5000 -840 -840 -960 -960 Bal. g. Bal. 9500 1800 | 36000 16250 -5000 9500 425 -3600 -3600 36000 16250 -5000 -840 -960 Bal. 1800 -1450 350 -1450 -1450 9500 425 36000 | 16250 -5000 -3600 -840 -960 Bal. 9500 350 425 36000 -3000 3000 1 6250 -5000 -3600 -1450 -840 -960 Bal.

Calculate values in above table as follows: E O V W X Y P Q R S T U Stockholders' Equity Rent | Sal. I Supp. | Expense || Expense | Expense + Auto | Expenses | Misc. Expense Item F G H I J K L M N = Liabilities + Accounts Common Fees Supplies = - Dividends + Payable stock Earned 36000 1800 1800 =SUM(F4) =SUM(H4) 36000 6750 =F5+F6 1800 36000 6750 Bal. Bal. -5000 =P7+P8 1800 36000 =N7+N8 Bal. A B C D Assets Accounts Item Cash Receivable 3 a. 36000 4 b. 5 Bal. =SUM(B3:B4) 6 c. 6750 7 Bal. =B5+B6 8 d. -5000 9 Bal. =B7+B8 10 e. -1375 11 Bal. =B9+B10 12 f. 9500 13 Bal.36375 =D11+D12 14 g. =-840-960 15 Bal. =B13+B14 9500 16 h. -3600 17 Bal. =B15+B16 9500 18 i. 19 Bal. 30975 9500 20 j. -3000 21 Bal. =B19+B20 9500 1800 -1375 =H9+H10 =F9+F10 36000 =P9+P10 Bal. 6750 9500 =N11+N12 1800 425 36000 -5000 Bal. |-840 -960 =V13+V14 1=X13+X14 Bal. 1800 425 36000 16250 -5000 36000 16250 -3600 =R15+R16 -5000 -840 -960 Bal. 1800 | 425 -1450 =F17+F18 425 -1450 =T17+T18 36000 16250 -5000 -3600 -840 -960 Bal. -3000 1=L19+L20 350 425 36000 16250 -5000 -3600 -1450 -840 -960 Bal.