On January 1, 2015, Carlton Myers established Vista Realty. Carlton completed the following transactions during the month of January:
a. Opened a business bank account with a deposit of $25,000 from personal funds.
b. Purchased supplies on account, $2,500.
c. Paid creditor on account, $1,600.
d. Earned sales commissions, receiving cash, $25,500.
e. Paid rent on office and equipment for the month, $5,000.
f. Withdrew cash for personal use, $8,000.
g. Paid automobile expenses for the month, $2,500, and miscellaneous expenses, $1,200.
h. Paid office salaries, $3,000.
Instructions
1. Indicate the effect of each transaction using the following tabular headings:

2. Prepare an income statement for January, a statement of owner€™s equity for January, and a balance sheet as at January 31, 2015.

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Liabilities+ Owner's Equity Office Salaries Assets Carlton Carlton Myers Accounts Myers Payable + Capital - Withdrawals + Commissions-Expense-Expense-Expense-Expense Sales Auto Misc Cash + Supplies