Jill Smith starts an apartment locator business that has the following transacti

Question

Jill Smith starts an apartment locator business that has the following transactions in the first month:

a) Smith invests $35,000 of personal funds to start the business.

b) She purchases on account office supplies costing $350.

c) She pays cash of $30,000 to acquire a lot next to the campus. This will be the future home of the business.

d) Smith locates apartments for client and receives cash of $1900.

e) Smith pays $100 of the account payable she created in transaction (b).

f) She pays $2000 of personal funds for a vacation.

g) She pays cash for expenses for office rent, $400, and utilities, $100.

h) The business sells office supplies to another business for its cost of $150.

i) Smith with drawls cash of $1200 personal use.

Account for these transactions and create a balance sheet as of the end of the month and income statement for the month on the next page.

Accounting for the Transactions 4 Month End office Supplies Land Liabilities Payable Equity Balance Sheet at Month End $Amo Liabilities and OwnersS Amount Equity Accounts Payable Owner's Equity Cash Office Supples Land Income Statement for end of Month Operating Reverue Ifor finding apartments) Less Rent Cost Less zilities Cost Less Uillities Co

Explanation / Answer

Accounting for the Transactions a b c d e f g h i Month End Balance Assets Cash 35000 -350 -30000 1900 -100 -500 150 -1200 4900 0 Office Supplies 350 -150 200 0 Land 30000 30000 0 Liabilities 0 0 Accounts Payable 1900 -100 1800 0 Owners Equity 35000 -500 -1200 33300 Balance Sheet Cash 4900 Accounts Payable 1800 Office Supplies 200 Owners Equity 33300 Land 30000 Total 35100 Total 35100

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.