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

Solution:

Below exce sheets shows the effect transaction and the balances after each transaction

9 _ Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X * Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good Fill B 1 U- *Merge & Center Calculation Ea Copy " Paste Format Painter Clipboard Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format 2 Clear Sort & Find & Filter - Select Editing Font Alignment Number Styles Cells U78 E F G H 1 J K L M N O Р 0 R S T U v w x Y Z AA AB AC AD AE AF AG 53 Maria Sales Commissi Rent Auto Adams, Drawing Salaries Expenses Supplies Expenses. Miscellaneous Expense on Expenses Expense 54 55 a. 56 b. Bal. 31,320 C. Bal. Maria Adams Income statement For the Month Ended Apr 30,2048 Sales commsision Expenses Rent revenue 6,140 Salaries expense 3,700 Automobil expense 2,940 Supplies expense 2040 Miscellaneous expense 1410 Total expense Net Income d. 31,320 31,320 Bal. Maria Accounts Adams, Cash + Supplies = Payable + Capital 30,000 30,000 3,070 3,070 30,000 3,070 3,070 30,000 -1,940 -1,940 28,060 3,070 1,130 30,000 31,320 59,380 3,070 1,130 30,000 -6,140 53,240 1,130 30,000 - 10,000 43,240 3,070 1,130 30,000 -4,350 38,890 3,070 1,130 30,000 -3,700 35,190 3,070 1,130 30,000 -2040 35,190 1,030 1,130 30,000 e. -6,140 -6,140 3,070 31,320 Bal. f. Bal. - 10,000 -10,000 16,230 15,090 31,320 -6,140 -2,940 -1,410 -1,410 -10,000 31,320 -6,140 8 Bal. h. Bal. i. 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 -3,700 -3,700 -10,000 31,320 -6,140 -2,940 -1410 0 -2040 -2040 Bal. -10,000 31,320 -6,140 -3,700 -2,940 -1410 Maria Adams Statement of Owners equity For the Month Ended April 30,2048 Maria adams capital april 1, 2048 Investments on April1, 2048 30,000 Net Income for april 15,090 45,090 Less: Dividends -10,000 Increase in owners equity Maria Adams, capital April 30,2048 35,090 35,090 Sheet161 Sheet162 Sheet163 Sheet164 Sheet165 Sheet166 Sheet167 Sheet168 Sheet169 Sheet170 Sheet171 1111 Ready M 100% 1 Type here to search O חד 62% O » ENG 03:31 21-09-2020