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 $42,000 from personal funds. b. Purchased office supplies on account, $3,370. c. Received cash from fees earned for managing rental property, $9,550. d. Paid rent on office and equipment for the month, $4,130. e. Paid creditors on account, $1,530. f. Billed customers for fees earned for managing rental property, $7,640. g. Paid automobile expenses (including rental charges) for the month, $920, and miscellaneous expenses, $460. h. Paid office salaries, $2,900. I. Determined that the cost of supplies on hand was $1,990; therefore, the cost of supplies used was $1,380. j. Withdrew cash for personal use, $2,750. 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) Assets Llablitles Owner's Equlty !! Chad Chad Accounts + Recelvable Accounts Fees Rent Salarles Item Cash Supplles Wilson, Wilson, Payable Earned Expense Expense Capital Drawing a. b.
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 $42,000 from personal funds. b. Purchased office supplies on account, $3,370. c. Received cash from fees earned for managing rental property, $9,550. d. Paid rent on office and equipment for the month, $4,130. e. Paid creditors on account, $1,530. f. Billed customers for fees earned for managing rental property, $7,640. g. Paid automobile expenses (including rental charges) for the month, $920, and miscellaneous expenses, $460. h. Paid office salaries, $2,900. I. Determined that the cost of supplies on hand was $1,990; therefore, the cost of supplies used was $1,380. j. Withdrew cash for personal use, $2,750. 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) Assets Llablitles Owner's Equlty !! Chad Chad Accounts + Recelvable Accounts Fees Rent Salarles Item Cash Supplles Wilson, Wilson, Payable Earned Expense Expense Capital Drawing a. b.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5PA: Inner Resources Company started its business on April 1, 2019. The following transactions occurred...
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Transcribed Image Text: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 $42,000 from personal funds.
b. Purchased office supplies on account, $3,370.
C. Received cash from fees earned for managing rental property, $9,550.
d. Paid rent on office and equipment for the month, $4,130.
e. Pald creditors on account, $1,530.
f. Billed customers for fees earned for managing rental property, $7,640.
g. Paid automobile expenses (Including rental charges) for the month, $920, and miscellaneous expenses, $460.
h. Pald office salaries, $2,900.
i. Determined that the cost of supplies on hand was $1,990; therefore, the cost of supplies used was $1,380.
j. Withdrew cash for personal use, $2,750.
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)
Assets
Llablitles
Owner's Equlty
Chad
Chad
Accounts
Accounts
Fees
Rent
Salarles
Item
Cash
Supplles
Wilson,
Wilson,
%3D
Recelvable
Payable
Earned
Expense
Expense
Capital
Drawing
a.
b.
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