Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September: Opened a business bank account with a deposit of $36,000 in exchange for common stock. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $6,750. Paid rent on office and equipment for the month, $5,000. Paid creditors on account, $1,375. Billed customers for fees earned for managing rental property, $9,500. Paid automobile expenses for month, $840, and miscellaneous expenses, $960. Paid office salaries, $3,600. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450. Paid dividends, $3,000. 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)

Question

13-01-2021
Business

contestada

Transactions On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September: Opened a business bank account with a deposit of $36,000 in exchange for common stock. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $6,750. Paid rent on office and equipment for the month, $5,000. Paid creditors on account, $1,375. Billed customers for fees earned for managing rental property, $9,500. Paid automobile expenses for month, $840, and miscellaneous expenses, $960. Paid office salaries, $3,600. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450. Paid dividends, $3,000. 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)

Respuesta :

Otras preguntas

fill in the blanks using place value: 43 ones x 3 tens =_______tens

there are 5 more crows than cows in a farm field. there is a total of 52 legs on all the animals. How many crows and how many cows are in the field?

Why is the Bantu migration the most important migration in history

sarah and bryan went shopping and spent a total of $47.50. bryan spent $15.50 less than what sarah spent. How much did bryan spend?

Progressive women reformers worked to: (a) reduce wages (b) limit the worday (c) overturn the nineteenth amendment (d) establish segregated schools in chicago

Poland, Bulgaria, and Romania were among _____. the Eastern bloc nations the nations of the United Kingdom the members of the Economic Commission for Eastern Eu

Why did the Egyptians call their king pharaoh? A. The Egyptians borrowed the title from the Sumerians. B. The king wore the Double Crown of Egypt, and the word

Which quote best expresses John Muir’s philosophy? A. "When we try to pick out anything [in nature] by itself, we find it hitched to everything else in the univ

What do you notice about the elements on the reactant and product side of the equation

Which was the major goal of conservationists? A. using land wisely and managing it for the future B. establishing parks and public lands in towns and cities C.

anthougo anthougo · Answer 1 · 2021-01-16T03:41:22+01:00

Answer:

Joy Tucker

Indication of the effect of each transaction and the balances after each transaction:

1. Opened a business bank account with a deposit of $36,000 in exchange for common stock.

Assets increased + $36,000 (Cash $36,000) = Liabilities + Equity increased + $36,000 (Common stock $36,000)

2. Purchased office supplies on account, $1,800.

Assets increased + $1,800 (Cash $36,000, Supplies $1,800) = Liabilities increased + $1,800 (Accounts payable $1,800) + Equity (Common stock $36,000)

3. Received cash from fees earned for managing rental property, $6,750.

Assets increased + $6,750 (Cash $42,750 , Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity increased + $6,750 (Common stock + $36,000 + Retained Earnings $6,750)

4. Paid rent on office and equipment for the month, $5,000.

Assets decreased - $5,000 (Cash $37,750, Supplies $1,800) = Liabilities increased (Accounts payable + $1,800) + Equity decreased - $5,000 (Common stock + $36,000 + Retained Earnings $1,750)

5. Paid creditors on account, $1,375.

Assets decreased - $1,375 (Cash $36,375, Supplies $1,800) = Liabilities decreased - $1,375 (Accounts payable $425) + Equity (Common stock + $36,000 + Retained Earnings $1,750)

6. Billed customers for fees earned for managing rental property, $9,500.

Assets increased +$9,500 (Cash $36,375, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity increased +$9,500 (Common stock + $36,000 + Retained Earnings $11,250)

7. Paid automobile expenses for month, $840, and miscellaneous expenses, $960.

Assets decreased -$1,800 (Cash $34,575, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,800 (Common stock + $36,000 + Retained Earnings $9,450)

8. Paid office salaries, $3,600.

Assets decreased -$3,600 (Cash $30,975, Supplies $1,800, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,600 (Common stock + $36,000 + Retained Earnings $5,850)

9. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450.

Assets decreased -$1,450 (Cash $30,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$1,450 (Common stock + $36,000 + Retained Earnings $4,400)

10. Paid dividends, $3,000.

Assets decreased -$3,000 (Cash $27,975, Supplies $350, Accounts receivable $9,500) = Liabilities decreased (Accounts payable $425) + Equity decreased -$3,000 (Common stock + $36,000 + Retained Earnings $1,400)

Explanation:

The above transactions show their effects on the accounting equation, which states that assets = liabilities + equity. Each transaction has some effects on the assets with equal effects on either the liabilities or equity. This implies that the equation is always in balance. It is the basis of the double-entry system of accounting.