EBook Transactions
On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during Apri
a. Opened a business bank account with a deposit of $31,000 in exchange for common stock.
b. Purchased office supplies on account, $3,280.
c. Received cash from fees earned for managing rental property, $9,090.
d. Paid rent on office and equipment for the month, $4,020.
e. Paid creditors on account, $1,490.
f. Billed customers for fees earned for managing rental property, $7,450.
g. Paid automobile expenses for month, $890, and miscellaneous expenses, $450.
h. Paid office salaries, $2,830.
i. Determined that the cost of supplies on hand was $1,940; therefore, the cost of supplies used was $1,340.
j. Paid dividends, $2,680.
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)
Assets
Liabilities
Accounts
Accounts
Common
Fees
Item Cash
Supplies
Dividends
Receivable
Payable
Stock
Earned
=
+
+
+
+
+
31,000 ✓
b.
3,280
3,280 ✓
Bal.
3,280
31,000 ✓
3,280