Question

Transactions: Financial Statements On July 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 $20,000 from personal funds. b. Purchased office supplies on account, $2,030. c. Pald creditor on account, $1,200 d. Earned sales commissions receiving cash, $20,760. e. Paid rent on office and equipment for the month, $4,070. f. Withdrew cash for personal use. $6.000. 9. Paldautomobile expenses (including rental charge) for the month $1,950, and miscellaneous expenses, $930. h. Paid office salaries, 32.450. 1. Determined that the cost of supplies on hand was $690; therefore, the cost of supplies used was $1,340. 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 abilities + Accounts Payable Pat Glenn, capital Pat Glenn, Drawing Sales Commissions Owner's Equity Rent Office Salaries Expense Expense Auto Expense Suppl Exper 20.000 20,000 2010 2030 20.000 2.010 20.000

Answer 1

20760 Hair MOON Realty Income statement for the month ended July 31, 2019 sales commissions Expense: salaries expense 2450 Rent expense 4070 Automobile expense 1950 supplies expense miscellaneous expense 930 Total Expense Net Income 1340 (10740) $ 10,020 $ 0 20000 HALF MOON REALTY Retained caming statement for the month ended July 31, 2019 Revoined Earning July 1, 2019 o wher's capttal Net Income $ 10020 Less Drawing (6000) Increase in aetained Eamings Retained Emming July 31 2019 owner's Equity 4020 $24020 $ 24070 690 $ 24,760 Balance sheet Assets cash supplies Total Assets Liabilites Accounts payable owner's Equity pat Gilen capitay! TOTC liability & owner's equity 740 2 4020 $24+60