Opened a business bank account with a deposit of $30,000 from personal funds.


Question Description:

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On April 1, 2008, Britt Quinn established Uptown Realty. Britt completed the following transactions during the month of April: a. Opened a business bank account with a deposit of $30,000 from personal funds. b. Paid rent on office and equipment for the month, $2,200. c. Paid automobile expenses (including rental charge) for month, $1,200, and miscellaneous expenses, $650. d. Purchased supplies (pens, file folders, and copy paper) on account, $200. e. Earned sales commissions, receiving cash, $20,800. f. Paid creditor on account, $150. g. Paid office salaries, $3,600. h. Withdrew cash for personal use, $1,500. i. Determined that the cost of supplies on hand was $40; therefore, the cost of supplies used was $160. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets = Liabilities + Owner’s Equity Owner’s Equity Ginny Ginny Office Accounts Tyler, Tyler, Sales Salaries Rent Auto Supplies Misc. Cash + Supplies = Payable + Capital – Drawing + Commissions – Expense – Expense – Expense – Expense – Expense – 2. Prepare an income statement for April, a statement of owner’s equity for April, and a balance sheet as of April 30.

Answer

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