at martinez company, checks are not prenumbered because both the purchasing agent and the treasurer are authorized to issue checks. each signer has access to unissued checks kept in an unlocked file cabinet. the purchasing agent pays all bills pertaining to goods purchased for resale. prior to payment, the purchasing agent determines that the goods have been received and verifies the mathematical accuracy of the vendor’s invoice. after payment, the invoice is filed by vendor name and the purchasing agent records the payment in the cash disbursements journal. the treasurer pays all other bills following approval by authorized employees. after payment, the treasurer stamps all bills "paid," files them by payment date, and records the checks in the cash disbursements journal. martinez company maintains one checking account that is reconciled by the treasurer.

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)