On January 1, 2014, Carlton Myers established Vista Realty. Carlton com a. opene

Question

On January 1, 2014, Carlton Myers established Vista Realty. Carlton com a. opened a business bank account with a deposit of $21,000 ia exchange for capital stock. b. Purchased ofice supplies (pens, file folders, paper, etc.) on account, $2,1S0. c. Paid crediter on account, $1,360 d. Earned sales commissio e. Paid rent on office and equipment for the month, $4,310 t. Paid dividends, $7,000. o. Paid sutomobile h. Paid office salaries, $2,590 i. Determined that the cost of supplies on hand was $730; therefore, the cost of supplies used was s1,420 Required pleted the following transactions during the month of January les commissions, receiving cash, $21,970 expenses (including rental charge) for month, $2,070, and miscellaneous expenses, $990. . Indicate the effect of each transaction and the balances .ker each transaction. For those bores transaction and the baiances after each transaction. For those boxes in which no entry is required, leave the box blank. as negatn - Liabdities Cash Supplies Accounts Capital DividendsSales PeyableCapital Stock Stockholders Equity Rent Expense Salaries Auto Supplies Miscellaneous Payable Cemmissions Expense Bal. Bal. bal. nal. Dal, tal

Explanation / Answer

Assets liabiltiies Stockholer's Equity Cash + Supplies Accounts Capital dividend Sales Rent Salaries Auto Supplies Mic payable Stock comm Expense Expense Expense Expense exp a 21,000 21,000 b 0 2150 2150 balance 21,000 2150 2150 21,000 c -1360 -1360 balance 19,640 2150 790 21,000 d 21970 21970 balance 41,610 2150 790 21,000 21970 e -4310 -4310 balance 37,300 2150 790 21,000 21970 -4310 f -7000 -7000 balance 30,300 2150 790 21,000 -7000 21970 -4310 g -3060 -2070 -990 balance 27,240 2150 790 21,000 -7000 21970 -4310 -2070 -990 h -2590 -2590 Balance 24,650 2150 790 21,000 -7000 21970 -4310 -2590 -2070 -990 i -1420 -1420 balance 24,650 730 790 21,000 -7000 21970 -4310 -2590 -2070 -1420 -990 income statement Sales commission 21,970 Expenses Rent expense 4310 Salaries expense 2590 Auto expense 2070 Supplies expense 1420 miscellaneou exp 990 total expense -11,380 Net income 10,590 Retained earnings opening balance 0 Add : Net income 10,590 less: divdiend paid -7000 Closing retained earnings 3590 Balance Sheet Assets Cash 24,650 supplies 730 total assets 25,380 Liabilities Accounts payable 790 Stockholders Equity Common stock 21,000 Retained earnings 3590 total stockholer's Equity 24,590 total liabilties & equity 25,380

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