On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:Opened a business bank account with a deposit of $30,000 from personal funds.Purchased office supplies on account, $1,800.Received cash from fees earned for managing rental property, $10,000.Paid rent on office and equipment for the month, $4,500.Paid creditors on account, $1,250.Billed customers for fees earned for managing rental property, $16,800.Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.Paid office salaries, $4,000.Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.Withdrew cash for personal use, $7,500.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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Description: On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:Opened a business bank account with a deposit of $30,000 from personal funds.Purchased office supplies on

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Individual Income Taxes

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ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

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

Opened a business bank account with a deposit of $30,000 from personal funds.
Purchased office supplies on account, $1,800.
Received cash from fees earned for managing rental property, $10,000.
Paid rent on office and equipment for the month, $4,500.
Paid creditors on account, $1,250.
Billed customers for fees earned for managing rental property, $16,800.
Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.
Paid office salaries, $4,000.
Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.
Withdrew cash for personal use, $7,500.

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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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)