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 $25,000 in exchange for common stock b. Purchased supplies on account, $2,510. c. Pald creditor on account, $1,590. d. Earned sales commissions, receiving cash, $25,650. e. Paid rent on office and equipment for the month, $5,030. f. Pald dividends, $8,000. 9. Pald automobile expenses for month, $2,410, and miscellaneous expenses, $1,150. h. Paid office salaries, $3,030. 1. Determined that the cost of supplies on hand was $850; therefore, the cost of supplies used was $1,660. 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 require negative values as negative numbers using a minus sign. Assets Liabilities + Stockholders' Equity Accounts Common + Supplies Sales Cash Auto Salaries Supplies Dividends + - Rent Expense- Payable Stock Commissions Expense Expense Expense 25,000 b. Bal Bal d. Bal e Bal Cred My Won 2 more Check My Wong < Previous Emainstructor Save and Subint Assignment for Grading

Answer 1

Solution:

1.)

	Assets
	Cash	+	Supplies	=	Acct. Payable	+	Common stock	-	Dividends	+	Sales Comm.	-	Rent Expenses	-	Salaries Expenses	-	Auto Expenses	-	Supplies Expenses	-	Misc. Expenses
a.	$25,000					+	$25,000
b.		+	$2,510	=	$2,510
Bal	$25,000	+	$2,510	=	$2,510		$25000
c.	-$1,590				-$1,590
Bal.	$23,410	+	$2,510		$920	+	$25,000
d.	+$25,650									+	$25650
Bal.	$49,060	+	$2,510		$920	+	$25,000			+	$25,650
e.	-$5,030											-	$5,030
Bal.	$44,030	+	$2,510		$920	+	$25,000			+	$25,650	-	$5,030
f.	-$8,000							-	$8,000
Bal.	$36,030	+	$2,510		$920	+	$25,000	-	$8,000	+	$25,650	-	$5,030
g.	-$3,560															-	$2,410			-	$1,150
Bal.	$32,470	+	$2,510		$920	+	$25,000	-	$8,000	+	$25,650	-	$5,030			-	$2,410			-	$1,150
h.	-$3,030													-	$3,030
Bal.	$29,440	+	$2,510		$920	+	$25,000	-	$8,000	+	$25,650	-	$5,030	-	$3,030	-	$2,410	-		-	$1,150
i			- $1,660															-	$1,660
Bal.	$29,440	+	$850		$920	+	$25,000	-	$8,000	+	$25,650	-	$5,030	-	$3,030	-	$2,410	-	$1,660	-	$1,150