Question

eBook Show Me How Calculator Transactions On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the fe a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $5,050. d. Paid rent on office and equipment for the month, $2,210. e. Paid creditors on account, $820. f. Billed customers for fees earned for managing rental property, $4,090. 9. Paid automobile expenses (including rental charges) for the month, $490, and miscellaneous expenses, $250. h. Paid office salaries, $1,550. 1. Determined that the cost of supplies on hand was $1,060; therefore, the cost of supplies used was $740. j. Withdrew cash for personal use. $1,470. 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 + Item Cash + Accounts Receivable + Supplies = Fe Accounts Payable Chad Wilson, Capital - Chad Wilson, Drawing Earn Check My Work 3 more Check My Work uses remaining

Answer 1

Assets = Liabilities + Stockholders' Equity Supplies Cash + Accounts Receivable + Supplies = Accounts Payable Chad Wilson, Capital 30000 Chad Wilson, Drawing + Fees Earned Rent Expense Salaries Expense Auto Expense Misc. Expense Expense" a. 30000 + 1800 1800 = = 1800 1800 30000 + 30000 0 5050 5050 Bal. 1800 = 1800 + 30000 5050 35050 -2210 32840 -820 32020 0 2210 2210 Bal. 0 1800 + 30000 5050 - + + + | + 1800 -820 980 Bal. 1800 30000 2210 4090 5050 4090 9140 Bal. 4090 1800 = 980 + 30000 2210 32020 -740 31280 -1550 29730 Bal. + + + + + 0 250 250 4090 + 1800 = 984 980 + 30000 9140 2210 490 1550 1550 Bal. 4090 + 980 + 30000 9140 2210 490 250 1800 -740 1060 740 740 Bal. 4090 980 30000 9140 2210 1550 490 250 29730 -1470 28260 + + 1470 1470 Bal. 4090 1060 = 980 + 30000 - | + 9140 - 2210 1550 - 740 490 250