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On September 1 of the current year, Joy Tucker established a business to manage rental property, She completed the following transactions during September.
a. Opened a business bank account with a deposit of $49,000 in exchange for common stock.
b. Purchased office supplies on account, $3,010.
c. Received cash from fees earned for managing rental property, $8,240.
d. Paid rent on office and equipment for the month, $3,690.
e. Paid creditors on account, $1,370. Billed customers for fees earned for managing rental property, $6,840.
g. Paid automobile expenses for month, $820, and miscellaneous expenses, $410.
h. Paid office salaries, $2,600
l. Determined that the cost of supplies on hand was $1,780; therefore, the cost of supplies used was $1,230. Paid dividends $2,460.
Required:
1. Indicate the effect of each transaction and the balances after each transaction.

Respuesta :

Zviko

Answer:

a. Assets : Increase $49,000 , Equity : Increase $49,000 , Liabilities : No Effect

b. Assets : Increase $3,010 , Equity : No Effect , Liabilities : Increase $3,010

c. Assets : Increase $8,240 , Equity : Increase $8,240 , Liabilities : No Effect

d. Assets : decrease $3,690 , Equity : decrease $3,690 , Liabilities : No Effect

e. Assets : decrease $1,370 , Equity : No Effect , Liabilities : decrease $1,370

f. Assets : Increase  $6,840 , Equity : Increase  $6,840 , Liabilities : No Effect

g.Assets : decrease  $1,230 , Equity : decrease  $1,230 , Liabilities : No Effect

h.Assets : decrease  $2,600 , Equity : decrease  $2,600 , Liabilities : No Effect

i. Assets : decrease  $2,460 , Equity : decrease  $2,460 , Liabilities : No Effect

Explanation:

For Each Transaction  First Identify the Two Accounts Affected and Then classify in one of the Categories of Assets , Liabilities and Equity. Finally determine the effect (decrease/increase/no effect in the category items are placed.