On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $33,000 from personal funds. Purchased office supplies on account, $3,000. Received cash from fees earned for managing rental property, $8,200. Paid rent on office and equipment for the month, $3,680. Paid creditors on account, $1,360. Billed customers for fees earned for managing rental property, $6,810. Paid automobile expenses (including rental charges) for the month, $820, and miscellaneous expenses, $410. Paid office salaries, $2,590. Determined that the cost of supplies on hand was $1,770; therefore, the cost of supplies used was $1,230. Withdrew cash for personal use, $2,450. 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)
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June: Opened a business bank account with a deposit of $33,000 from personal funds. Purchased office supplies on account, $3,000. Received cash from fees earned for managing rental property, $8,200. Paid rent on office and equipment for the month, $3,680. Paid creditors on account, $1,360. Billed customers for fees earned for managing rental property, $6,810. Paid automobile expenses (including rental charges) for the month, $820, and miscellaneous expenses, $410. Paid office salaries, $2,590. Determined that the cost of supplies on hand was $1,770; therefore, the cost of supplies used was $1,230. Withdrew cash for personal use, $2,450. 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)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 48BE: Collection of Amounts Previously Written Off Hannah purchased a laptop computer from Perry Corp. for...
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Transactions
On June 1 of the current year, Pamela Schatz established a business to manage rental property. She completed the following transactions during June:
- Opened a business bank account with a deposit of $33,000 from personal funds.
- Purchased office supplies on account, $3,000.
- Received cash from fees earned for managing rental property, $8,200.
- Paid rent on office and equipment for the month, $3,680.
- Paid creditors on account, $1,360.
- Billed customers for fees earned for managing rental property, $6,810.
- Paid automobile expenses (including rental charges) for the month, $820, and miscellaneous expenses, $410.
- Paid office salaries, $2,590.
- Determined that the cost of supplies on hand was $1,770; therefore, the cost of supplies used was $1,230.
- Withdrew cash for personal use, $2,450.
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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