On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: Opened a business bank account with a deposit of $43,000 in exchange for common stock. Purchased office supplies on account, $3,250. Received cash from fees earned for managing rental property, $8,880. Paid rent on office and equipment for the month, $3,980. Paid creditors on account, $1,470. Billed customers for fees earned for managing rental property, $7,370. Paid automobile expenses for month, $880, and miscellaneous expenses, $440. Paid office salaries, $2,800. Determined that the cost of supplies on hand was $1,920; therefore, the cost of supplies used was $1,330. Paid dividends, $2,650. Required:
On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: Opened a business bank account with a deposit of $43,000 in exchange for common stock. Purchased office supplies on account, $3,250. Received cash from fees earned for managing rental property, $8,880. Paid rent on office and equipment for the month, $3,980. Paid creditors on account, $1,470. Billed customers for fees earned for managing rental property, $7,370. Paid automobile expenses for month, $880, and miscellaneous expenses, $440. Paid office salaries, $2,800. Determined that the cost of supplies on hand was $1,920; therefore, the cost of supplies used was $1,330. Paid dividends, $2,650. Required:
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April:
- Opened a business bank account with a deposit of $43,000 in exchange for common stock.
- Purchased office supplies on account, $3,250.
- Received cash from fees earned for managing rental property, $8,880.
- Paid rent on office and equipment for the month, $3,980.
- Paid creditors on account, $1,470.
- Billed customers for fees earned for managing rental property, $7,370.
- Paid automobile expenses for month, $880, and miscellaneous expenses, $440.
- Paid office salaries, $2,800.
- Determined that the cost of supplies on hand was $1,920; therefore, the cost of supplies used was $1,330.
- Paid dividends, $2,650.
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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