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)
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)
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 1AP
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Question
Transactions
On April 1 of the current year, Andrea Byrd established a business to manage rental property. She completed the following transactions during April:
- Opened a business bank account with a deposit of $45,000 from personal funds.
- Purchased office supplies on account, $2,000.
- Received cash from fees earned for managing rental property, $8,500.
- Paid rent on office and equipment for the month, $5,000.
- Paid creditors on account, $1,375.
- Billed customers for fees earned for managing rental property, $11,250.
- Paid automobile expenses for month, $840, and miscellaneous expenses, $900.
- Paid office salaries, $3,600.
- Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450.
- Withdrew cash for personal use, $2,000.
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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