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Question: On April 1, 2018, Maria Adams established

On April 1, 2018, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: A. Opened a business bank account with a deposit of $24,000 in exchange for common stock. B. Paid rent on office and equipment for the month, $3,600. C. Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600. D. Purchased supplies on account, $1,200. E. Earned sales commissions, receiving cash, $19,800. F. Paid creditor on account, $750. G. Paid office salaries, $2,500. H. Paid dividends, $3,500. I. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900. Instructions: 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
On April 1, 2018, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
A. Opened a business bank account with a deposit of $24,000 in exchange for common stock.
B. Paid rent on office and equipment for the month, $3,600.
C. Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600.
D. Purchased supplies on account, $1,200.
E. Earned sales commissions, receiving cash, $19,800.
F. Paid creditor on account, $750.
G. Paid office salaries, $2,500.
H. Paid dividends, $3,500.
I. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.

Instructions:
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:


2. Prepare an income statement for April, a retained earnings statement for April, and a balance sheet as of April 30.

2. Prepare an income statement for April, a retained earnings statement for April, and a balance sheet as of April 30.





Transcribed Image Text:

Assets = Liabilities + Stockholders' Equity Common Sales - Dividends + Commissions Rent Salaries Supplies Expense Accounts Auto Misc. Cash + Supplies Payable + Stock Expense Expense Expense Expense


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