On April 1, 2008, Britt Quinn established Uptown Realty. Britt completed the following transactions during the month of April:
a. Opened a business bank account with a deposit of $30,000 from personal funds.
b. Paid rent on office and equipment for the month, $2,200.
c. Paid automobile expenses (including rental charge) for month, $1,200, and miscellaneous expenses, $650.
d. Purchased supplies (pens, file folders, and copy paper) on account, $200.
e. Earned sales commissions, receiving cash, $20,800.
f. Paid creditor on account, $150.
g. Paid office salaries, $3,600.
h. Withdrew cash for personal use, $1,500.
i. Determined that the cost of supplies on hand was $40; therefore, the cost of supplies used was $160.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using the
following tabular headings:
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Assets
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=
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Liabilities +
|
|
|
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Owner's Equity
|
|
|
|
| |
|
|
|
Ginny
|
Ginny
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Office
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|
|
|
|
| |
|
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Accounts
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Tyler,
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Tyler,
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Sales
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Salaries
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Rent
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Auto
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Supplies
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Misc.
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Cash +
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Supplies
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=
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Payable +
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Capital -
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Drawing +
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Commissions -
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Expense -
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Expense -
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Expense -
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Expense -
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Expense -
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2. Prepare an income statement for April, a statement of owner's equity for April, and a balance sheet as of April 30.