Reference no: EM132472801
On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:
Point 1: Opened a business bank account with a deposit of $30,000 from personal funds.
Point 2: Purchased office supplies on account, $1,800.
Point 3: Received cash from fees earned for managing rental property, $10,000.
Point 4: Paid rent on office and equipment for the month, $4,500.
Point 5: Paid creditors on account, $1,250.
Point 6: Billed customers for fees earned for managing rental property, $16,800.
Point 7: Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.
Point 8: Paid office salaries, $4,000.
Point 9: Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.
Point 10: Withdrew cash for personal use, $7,500.
Required:
Question 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)