Question

Transactions; Financial Statements On April 1, 2019, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: a. Opened a business bank account with a deposit of $24,000 from personal funds. b. Paid rent on office and equipment for the month, $3,600. C. Paid automobile expenses (including rental charge) for the month, $1,350, and miscellaneous expenses, $600. d. Purchased office supplies on account, $1,200. e. Earned sales commissions (revenue) from selling real estate, receiving cash, $19,800. f. Paid creditor on account, $750. g. Paid office salaries, $2,500. h. Withdrew cash for personal use, $3,500. i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900. 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. Assets Liabilities 1 Ominarle Gamit

Answer 1

Total Assets Liabilties Accounts Payable + Supplies = Owner's Equity Maria Maria Adams, Adams, Sales Rent Salaries Auto Supplies Miscellaneous - Drawing + Commissions - Expense - Expense - Expense - Expense - Expense $24,000 $3,600 $3,600 $1,350 $3,600 $1,350 $600 Cash $24,000 -$3,600 $20,400 $750 $21,150 Bal. $600 Bal. $1,200 $1,200 $1,200 $1,200 Bal. $3,600 $1,350 $600 $19,800 $19,800 Bal. $1,200 $3,600 $1,350 $600 $21,150 $19,800 $40,950 -$750 $40.200 -$2,500 $37,700 -$3,500 $34,200 $1,200 -$750 $450 Bal. $1,200 $19,800 $3,600 $1,350 $600 $2,500 $2,500 Bal. $1,200 $450 $19,800 $3,600 $1,350 $600 $3,500 $3,500 Bal. $450 $19,800 $3,600 $2,500 $1,350 $600 $1,200 -$900 $300 $900 $900 Bal. $34,200 $450 $3,500 $19,800 $3,600 $2,500 $1,350 $600 Custom Realty Income Statement For the Month Ended April 30, 2019 Sales Commissions $19,800 Expenses: Rent Expense $3,600 Salaries Expense $2.500 Auto Expense $1,350 SuppliesExpense $900 Miscellaneous Expense $600 Total Expenses $8,950 Net Income $10,850