, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July. A. Opened a business bank account with a deposit of $25,000 from personal funds. B. Purchased office supplies on account, $1,850. C. Paid creditor on account, $1,200. D. Earned sales commissions, receiving cash, $41,500. E. Paid rent on office and equipment for the month, $3,600. F. Withdrew cash for personal use, $4,000. G. Paid automobile expenses (including rental charge) for the month, $3,050, and miscellaneous expenses, $1,600. H. Paid office salaries, $5,000. I. Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900. Required: 1. Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered. Assets = Liabilities + Owner’s Equity Pat Pat Accounts Glenn, Glenn, Sales Salaries Rent Auto Supplies Miscellaneous Cash + Supplies = Payable + Capital - Drawing + Commissions - Expense - Expense - Expense - Expense - Expense 2. Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the statements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.

A.	Opened a business bank account with a deposit of $25,000 from personal funds.
B.	Purchased office supplies on account, $1,850.
C.	Paid creditor on account, $1,200.
D.	Earned sales commissions, receiving cash, $41,500.
E.	Paid rent on office and equipment for the month, $3,600.
F.	Withdrew cash for personal use, $4,000.
G.	Paid automobile expenses (including rental charge) for the month, $3,050, and miscellaneous expenses, $1,600.
H.	Paid office salaries, $5,000.
I.	Determined that the cost of supplies on hand was $950; therefore, the cost of supplies used was $900.

	Required:
1.	Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.

Required:

Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.

Assets	= Liabilities +	Owner’s Equity

			Pat	Pat
		Accounts	Glenn,	Glenn,	Sales	Salaries	Rent	Auto	Supplies	Miscellaneous
Cash	+ Supplies	= Payable	+ Capital	- Drawing	+ Commissions	- Expense	- Expense	- Expense	- Expense	- Expense

2. Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the statements.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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