Question

On April 1, 20Y8, 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 $30,000 in exchange for common stock. b. Purchased supplies on account, $3,070. c. Paid creditor on account, $1,940. d. Earned sales commissions, receiving cash, $31,320. e. Paid rent on office and equipment for the month, $6,140. f. Paid dividends, $10,000. g. Paid automobile expenses for month, $2,940, and miscellaneous expenses, $1,410. h. Paid office salaries, $3,700. i. Determined that the cost of supplies on hand was $1,030; therefore, the cost of supplies used was $2,040. 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 using a minus sign. Assets = Liabilities + Cash Accounts Payable + Supplies = Stockholders' Equity Salaries Rent Expense - Expense Common Stock Sales Dividends + Commissions Auto Expense Supplies Expense Miscellaneous Expense a. 30,000 30,000 b. 3,070 3,070 Bal. 3,070 3,070 30,000 - 30,000 1,940 c. 1,940 Bal. 3,070 1,130 30,000 28,060 31,320 d. 31,320 Bal. 59,380 3,070 1,130 30,000 31,320 e. 6,140 6,140 Bal. 3,070 1,130 30,000 31,320 6,140 53,240 10,000 f. 10,000 Bal. 43,240 3,070 1,130 30,000 10,000 31,320 6,140 g. 4,350 2,940 1,410 Bal. 3,070 1,130 30,000 10,000 31,320 6,140 2,940 1,410 38,890 3,700 h. 3,700 Bal. 35,190 3,070 1,130 30,000 10,000 31,320 6,140 3,700 2,940 1,410 i. 2,040 2,040 Bal. 35,190 1,030 1,130 30,000 10,000 31,320 6,140 3,700 2,940 2,040 1,410

Answer 1

Custom Realty

Balance Sheet

April 30,20Y8

Assets
Cash		35190
Supplies		1030
Total assets		36220
Liabilities
Account payable		1130
Stockholder's equity
Common Stock	30000
Retained earnings	5090
Total Stockholder's equity		35090
Total Liabilities and Stockholder's equity		36220