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 Income Statements For the Months Ended April 30,20Y8 Sales Commissions $ 31,320 Less:Expenses: Rent Expense $6,140 Salaries Expense $3,700 Auto Expense $ 2,940 Supplies Expense $ 2,040 Miscellaneous Expense $ 1,410 Total Expenses $ 16,230 Net Income $ 15,090 Custom Realty Statement of Stockholders' Equity For the Months Ended April 30,20Y8 Common Stock Retained Earnings Total SH Equity Balances, April 1,2048 $ $ $ Common Stock $ 30,000 $ $ 30,000 Dividends -$ 10,000 $ 10,000 Net Income $ $ 15,090 $ 15,090 Balances, April 30,2048 $ 30,000 $ 5,090 $ 35,090 $ 35,190 $ 1,030 $36,220 Custom Realty Balance sheet April 30,20Y8 Assets Cash Supplies Total Assets Liabilities Accounts Payable Stockholders' Equity: Common Stock $ 30,000 Retained Earnings $ 5,090 Total Stockholders' equity Total Liabilities and Stockholders' Equity $ 1,130 $ 35,090 $36,220 $ $

----------------------------------------------------

If you have any queries/doubts,Immediately drop your messages in the comment box !!!! I will help you...
Thanks!!!