1.Indicate the effect of each transaction and the balances after each transactio

Question

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


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:


Assets =liabiliyies+ owner's equity
________________________________________________________________________________________

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

Explanation / Answer

Net Income: $4600 $0 - $1800 + $4600 = $2800 Investments - Withdrawals + Net Income $40,000 - $1,800 + $4,600 = $42,800

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