On April 1, 2008, Britt Quinn established Uptown Realty. Britt completed the following transactions during the month of April:

a. Opened a business bank account with a deposit of $30,000 from personal funds.

b. Paid rent on office and equipment for the month, $2,200.

c. Paid automobile expenses (including rental charge) for month, $1,200, and miscellaneous expenses, $650.

d. Purchased supplies (pens, file folders, and copy paper) on account, $200.

e. Earned sales commissions, receiving cash, $20,800.

f. Paid creditor on account, $150.

g. Paid office salaries, $3,600.

h. Withdrew cash for personal use, $1,500.

i. Determined that the cost of supplies on hand was $40; therefore, the cost of supplies used was $160.

Instructions

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

2. Prepare an income statement for April, a statement of owner's equity for April, and a balance sheet as of April30.

Transcribed Image Text:

Owner's Equity Office Salaries Rent Assets Liabilities + Britt Britt Accounts uinn n, Payable + Capital - Drawing + Commissions- Expense - Expense - Expense - Expense - Expense Sales Auto Supplies Misc. Cash + Supplies