Question

blems: Series A PR 1-1A Transactions OBJ. 4 1 1 of the current year, Andrea Byrd established a business to manage 85 property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $45,000 from personal funds. b. Purchased office supplies on account, $2,000. c. Received cash from fees earned for managing rental property, $8,500 d. Paid rent on office and equipment for the month, $5,000. e. Paid creditors on account, $1,375 f. Billed customers for fees earned for managing rental property, $11,250. g. Paid automobile expenses (including rental charges) for month, $840, and miscella- neous expenses, $900. h. Paid office salaries, $3,600. i. Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450 j. Withdrew cash for personal use, $2,000. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings

Answer 1

Ans-

			Assets			=	Liabilities	+									Owner's Equity
Item	Cash	+	Accounts Receivables	+	Supplies	=	Accounts Payable	+	Andrea Byrd, Capital	-	Andrea Byrd, Drawings	+	Fees Earned	-	Rent Expenses	-	Salaries Expenses	-	Supplies Expenses	-	Auto Expenses	-	Miscellaneous Expenses
a.	45,000	+		+		=		+	45,000	-		+		-		-		-		-		-
Balance	45,000	+		+		=		+	45,000	-		+		-		-		-		-		-
b.		+		+	2,000	=	2,000	+		-		+		-		-		-		-		-
Balance	45,000	+		+	2,000	=	2,000	+	45,000	-		+		-		-		-		-		-
c.	8,500	+		+		=		+		-		+	8,500	-		-		-		-		-
Balance	53,500	+		+	2,000	=	2,000	+	45,000	-		+	8,500	-		-		-		-		-
d.	-5,000	+		+		=		+		-		+		-	-5,000	-		-		-		-
Balance	48,500	+		+	2,000	=	2,000	+	45,000	-		+	8,500	-	-5,000	-		-		-		-
e.	-1,375	+		+		=	-1,375	+		-		+		-		-		-		-		-
Balance	47,125	+		+	2,000	=	625	+	45,000	-		+	8,500	-	-5,000	-		-		-		-
f.		+	11,250	+		=		+		-		+	11,250	-		-		-		-		-
Balance	47,125	+	11,250	+	2,000	=	625	+	45,000	-		+	19,750	-	-5,000	-		-		-		-
g.	-1,740	+		+		=		+		-		+		-		-		-		-	-840	-	-900
Balance	45,385	+	11,250	+	2,000	=	625	+	45,000	-		+	19,750	-	-5,000	-		-		-	-840	-	-900
h.	-3,600	+		+		=		+		-		+		-		-	-3,600	-		-		-
Balance	41,785	+	11,250	+	2,000	=	625	+	45,000	-		+	19,750	-	-5,000	-	-3,600	-		-	-840	-	-900
i.		+		+	-1,450	=		+		-		+		-		-		-	-1,450	-		-
Balance	41,785	+	11,250	+	550	=	625	+	45,000	-		+	19,750	-	-5,000	-	-3,600	-	-1,450	-	-840	-	-900
j.	-2,000	+		+		=		+		-	-2,000	+		-		-		-		-		-
Balance	39,785	+	11,250	+	550	=	625	+	45,000	-	-,2000	+	19,750	-	-5,000	-	-3,600	-	-1,450	-	-840	-	-900