Question

Transactions: Financial Statements On April 1, 2048, 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 $35,000 in exchange for common stock. b. Purchased supplies on account, $3,540. c. Paid creditor on account, $2,240 d. Earned sales commissions, receiving cash, $36,120. e. Paid rent on office and equipment for the month, $7,080. f. Paid dividends. $11,000. g. Paid automobile expenses for month, $3,400, and miscellaneous expenses, $1,630. h. Pald office salaries, 54,260. i. Determined that the cost of supplies on hand was $1,190; therefore, the cost of supplies used was $2,350. 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 + Stockholders' Equity Accounts Sales Common Salaries Auto Cash + Supplies - Dividends + Supplies Miscellaneous Rent Expense Payable Stock Commissions Expense Expense Expense Expense a b. Bal. C. Bal.

Answer 1

Requirement 1:

	Assets				Liabilities	+	Stockholder's equity
	Cash	+	Supplies	=	Accounts payable	+	Common stock	-	Dividends	+	Sales commission	-	Rent Expense	-	Salaries Expense	-	Auto Expense	-	Supplies expense	-	Miscellaneous Expense
a.	$         35,000						$              35,000
b.			$         3,540		$                      3,540
Bal	$         35,000		$         3,540		$                      3,540		$              35,000
c.	$         (2,240)				$                    (2,240)
Bal	$         32,760		$         3,540		$                      1,300		$              35,000
d.	$         36,120										$                    36,120
Bal	$         68,880		$         3,540		$                      1,300		$              35,000				$                    36,120
e	$         (7,080)												$            (7,080)
Bal	$         61,800		$         3,540		$                      1,300		$              35,000				$                    36,120		$            (7,080)
f	$       (11,000)								$       (11,000)
Bal	$         50,800		$         3,540		$                      1,300		$              35,000		$       (11,000)		$                    36,120		$            (7,080)
g	$         (5,030)																$            (3,400)				$                                (1,630)
Bal	$         45,770		$         3,540		$                      1,300		$              35,000		$       (11,000)		$                    36,120		$            (7,080)				$            (3,400)				$                                (1,630)
h	$         (4,260)														$                  (4,260)
Bal	$         41,510		$         3,540		$                      1,300		$              35,000		$       (11,000)		$                    36,120		$            (7,080)		$                  (4,260)		$            (3,400)				$                                (1,630)
i			$       (2,350)																$                    (2,350)
Bal	$         41,510		$         1,190		$                      1,300		$              35,000		$       (11,000)		$                    36,120		$            (7,080)		$                  (4,260)		$            (3,400)		$                    (2,350)		$                                (1,630)