Transactions; Financial Statements On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $26,000 in exchange for common stock. Purchased supplies on account, $2,620. Paid creditor on account, $1,660. Earned sales commissions, receiving cash, $26,750. Paid rent on office and equipment for the month, $5,240. Paid dividends, $8,000. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200. Paid office salaries, $3,160. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740. Required: Question Content Area 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 required, enter negative values as negative numbers using a minus sign. 2. Prepare an income statement for April.
Transactions; Financial Statements On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $26,000 in exchange for common stock. Purchased supplies on account, $2,620. Paid creditor on account, $1,660. Earned sales commissions, receiving cash, $26,750. Paid rent on office and equipment for the month, $5,240. Paid dividends, $8,000. Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200. Paid office salaries, $3,160. Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740. Required: Question Content Area 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 required, enter negative values as negative numbers using a minus sign. 2. Prepare an income statement for April.
ChapterA2: Comprehensive Case Problems
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Transactions; Financial Statements
On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
- Opened a business bank account with a deposit of $26,000 in exchange for common stock.
- Purchased supplies on account, $2,620.
- Paid creditor on account, $1,660.
- Earned sales commissions, receiving cash, $26,750.
- Paid rent on office and equipment for the month, $5,240.
- Paid dividends, $8,000.
- Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200.
- Paid office salaries, $3,160.
- Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740.
Required:
Question Content Area
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 required, enter negative values as negative numbers using a minus sign.
2. Prepare an income statement for April.
Transcribed Image Text:2. Prepare an income statement for April.
Custom Realty
Income Statement
For the Month Ended April 30, 20Y8
Sales commissions
Expenses:
Supplies expense
Total expenses
69
001
Transcribed Image Text:a.
b.
Bal.
C.
Bal.
d.
Bal.
e.
Bal.
f.
Bal.
g.
Bal.
h.
Bal.
i.
Bal.
Cash
26,000
26,000
Assets
+ Supplies =
Liabilities
+
Accounts
Payable
+
Common
Stock
26,000 ✔
26,000
✓
- Dividends +
Sales
Commissions
Stockholders' Equity
Salaries
Expense
Rent
Expense
Auto
Expense
-2,510 X
Supplies Miscellaneous
Expense
Expense
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