Question

personal bank account to an account to be used for the business in exchange for common stock, $31,500 Paid rent on office and equipment for b. Amount of total expenses recorded in the ledger S 2 3 Purchased supplies on account, $2,200 6 Paid automobile expenses (including miscellaneous expenses, $460 47.450.00 Oct 1 Pre

Answer 1

Answer 4b
Amount of expense recorded in the ledger
Office and Equipment rent	$2,650.00
Automobile expenses	$1,630.00
Mise.expenses	$460.00
Office Salaries	$2,400.00
Supplies Expenses	$1,150.00
Amount of expense recorded in the ledger	$8,290.00
Answer 4c
Amount of net income for October
Revenue	$14,580.00
Less : Expenses	$8,290.00
Net Income	$6,290.00
Answer 5
Determination of increase or decrease in retained earnings for October
Net Income	$6,290.00
Less : Dividends paid	$3,200.00
Increase in Retained Earnings for October	$3,090.00