Answered: Transactions On June 1 of the current…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter2: Analyzing Transactions

Section: Chapter Questions

Problem 3PB: On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During...

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Transactions

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:

a.Opened a business bank account with a deposit of $45,000 from personal funds.

b.Purchased office supplies on account, $2,570.

c.Received cash from fees earned for managing rental property, $7,290.

d.Paid rent on office and equipment for the month, $3,150.

e.Paid creditors on account, $1,170.

f.Billed customers for fees earned for managing rental property, $5,830.

g.Paid automobile expenses (including rental charges) for the month, $700, and miscellaneous expenses, $350.

h.Paid office salaries, $2,220.

i.Determined that the cost of supplies on hand was $1,520; therefore, the cost of supplies used was $1,050.

j.Withdrew cash for personal use, $2,100.

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)

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