On September 1 of the current year, Maria Edsall established a business to manag

Question

On September 1 of the current year, Maria Edsall established a business to manage rental property. She completed the following transactions during September:

a. opened a business bank account with a deposit of $40,000. from personal funds.
b.purchased supplies on account, $2,200.
c. received cash from fees earned for managing rental property, $6,000
d. paid rent on office and equipment, 2,700.
e. paid creditors on account, $1,000.
f. billed customers for fees for managing property, $5,000
g. paid automobile expenses, $300.
h. paid ofifce salaries, $1,900.
i. determined that the cost of supplies on hand was $1,300., therefore, the cost of supplies used was $900.
j. Withdrew cash for personal use, $1,800.
Question:

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

Assets =liabilitiies+ owner's equity
________________________________________________________________________________________

Accounts Accounts Maria' Maria Fees Rent Salaries Auto M
Cash+Receivables+Supplies= Payable + Capital - Drawing + Earned -Expense - Expense - pense -






2. Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals and expenses decreased owner's equity.

3. Determine the net income for September.

4. How much did September's transaction increase or decrease Maria's capital?

Explanation / Answer

Please post each questions as a single post. 3. Determine the net income for September. Investments - Withdrawals + Net Income Net Income= $40,000 - $1,800 + $4,600 = $42,800

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