owv2 Onli xG If total assets decrease x akeAssignment/takeAssignmentMain.do?invo
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owv2 Onli xG If total assets decrease x akeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take;&inprogress; false Calculator Transactions On June 1 of the current year, Maria Esall established a business to manage rental property. She completed the following transactions during June a. Opened a business bank account with a deposit of $39,000 in exchange for capital stock. b. Purchased office supplies on account, $2,080. c. Received cash from fees earned for managing rental property, $5,830 d. Paid rent on office and equipment for the month, $2,550. e. Paid creditors on account, $940 f. Billed customers for fees earned for managing rental property, $4,720 g. Paid automobile expenses for month, $570, and miscellaneous expenses, $280. h. Paid office salaries, $1,790. i. Determined that the cost of supplies on hand was $1,230; therefore, the cost of supplies used was $850. j. Paid dividends $1,700 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. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) Assets Liabilities Stockholders' Equity Fees CapitalDividends Earned Sal. Expense Rent Item Cash Receivable SuppliesAccounts Stock a. b. Bal.Explanation / Answer
Asset = Liabilities + Stockholder's Equity S. No. Items Cash + Acount Receivable + Supplies = Account Payable + Capital Stock - Dividend + Fees Earned - Rent Expense - Salary expense - Supplies Expense - Aut Expense - Misc. Expense a Issue capital stock $39,000.00 $39,000.00 b Purchase of Supplies $2,080.00 $2,080.00 Bal $39,000.00 $2,080.00 $2,080.00 $39,000.00 c. Received cash from fees earned for managing retal property $5,830.00 $5,830.00 Bal $44,830.00 $2,080.00 $2,080.00 $39,000.00 $5,830.00 d Paid rent on office & Equipment -$2,550.00 $2,550.00 Bal $42,280.00 $2,080.00 $2,080.00 $39,000.00 $5,830.00 $2,550.00 e Paid creditor on account -$940.00 -$940.00 Bal $41,340.00 $2,080.00 $1,140.00 $39,000.00 $5,830.00 $2,550.00 f Billed Customer for fees earned $4,720.00 $4,720.00 Bal $41,340.00 $4,720.00 $2,080.00 $1,140.00 $39,000.00 $10,550.00 $2,550.00 g Automobile expense -$570.00 $570.00 Bal $40,770.00 $4,720.00 $2,080.00 $1,140.00 $39,000.00 $10,550.00 $2,550.00 $570.00 h Misc Expense -$280.00 $280.00 Bal $40,490.00 $4,720.00 $2,080.00 $1,140.00 $39,000.00 $10,550.00 $2,550.00 $570.00 $280.00 i Office salary paid -$1,790.00 $1,790.00 Bal $38,700.00 $4,720.00 $2,080.00 $1,140.00 $39,000.00 $10,550.00 $2,550.00 $1,790.00 $570.00 $280.00 j Cost of Supplies used -$850.00 $850.00 Bal $38,700.00 $4,720.00 $1,230.00 $1,140.00 $39,000.00 $10,550.00 $2,550.00 $1,790.00 $850.00 $570.00 $280.00 h Paid Dividend -$1,700.00 $1,700.00 Bal $37,000.00 $4,720.00 $1,230.00 $1,140.00 $39,000.00 $1,700.00 $10,550.00 $2,550.00 $1,790.00 $850.00 $570.00 $280.00 $42,950.00 $1,140.00 $41,810.00 2 Stockholde's Equity has the right of stockholders' to the asset of the businees. The rights are Increased by issuance of capital stock and revenue and decreased by dividend expenses. 3 Determine the Net income for June Net Income = Fees Earned - Rent Expense - Salries Expense-Supplies Expense- Auto Expense - Miscellaneous Expense Net Income=$10550-$2550-1790-$850-$570-$280 Net Income =$4510 4 How much did June' transaction increase or decrease retained earning = Beginning Balance- Dividend Issued + Net Income =$0-$1700+$4510 =$2810
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