On July 1, 2016, Pat Glenn established Half Moon Realty. Pat completed the follo
ID: 2533325 • Letter: O
Question
On July 1, 2016, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.
A. Opened a business bank account with a deposit of $20,000 from personal funds. B. Paid rent on office and equipment for the month, $3,200. C. Paid automobile expenses (including rental charge) for month, $1,450, and miscellaneous expenses, $700. D. Purchased office supplies on account, $1,350. E. Earned sales commissions, receiving cash, $20,600. F. Paid creditor on account, $750. G. Paid office salaries, $2,600. H. Withdrew cash for personal use, $4,000. I. Determined that the cost of supplies on hand was $500; therefore, the cost of supplies used was $850.Explanation / Answer
Owners' equity
+
-
+
-
-
-
-
-
Items
Assets
Liabilities
Cash
Supplies
Accounts payable
Pat Glen's capital
Pat Glen's drawings
Sales
Salaries
Rent
Auto
Supplies
Miscalenous
Commissions
Expenses
Expenses
Expenses
Expense
expense
A
20,000.00
20,000.00
3,200.00
B
(3,200.00)
C
(2,150.00)
1,450.00
700.00
D
1,350.00
1,350.00
E
20,600.00
20,600.00
F
(750.00)
(750.00)
G
(2,600.00)
2,600.00
H
(4,000.00)
4,000.00
I
(850.00)
850.00
Balances
27,900.00
500.00
600.00
20,000.00
4,000.00
20,600.00
2,600.00
3,200.00
1,450.00
850.00
700.00
Part 2:
Income statement
Amount ($)
Amount ($)
Revenues:
Sales commission
20,600.00
Less: Expenditures:
Salaries expenses
2600
Rent expense
3200
Auto expense
1450
Supplies expense
850
Miscellaneous expense
700
8800
Profit before tax
11,800.00
Owners' equity
+
-
+
-
-
-
-
-
Items
Assets
Liabilities
Cash
Supplies
Accounts payable
Pat Glen's capital
Pat Glen's drawings
Sales
Salaries
Rent
Auto
Supplies
Miscalenous
Commissions
Expenses
Expenses
Expenses
Expense
expense
A
20,000.00
20,000.00
3,200.00
B
(3,200.00)
C
(2,150.00)
1,450.00
700.00
D
1,350.00
1,350.00
E
20,600.00
20,600.00
F
(750.00)
(750.00)
G
(2,600.00)
2,600.00
H
(4,000.00)
4,000.00
I
(850.00)
850.00
Balances
27,900.00
500.00
600.00
20,000.00
4,000.00
20,600.00
2,600.00
3,200.00
1,450.00
850.00
700.00
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