On October 1, 2014, Kevin Bosley established Sunrise Realty. Kevin completed the following transactions during the month of October:
a. Opened a business bank account with a deposit of $18,000 in exchange for capital stock.
b. Purchased office supplies on account, $3,200.
c. Paid creditor on account, $1,800.
d. Earned sales commissions, receiving cash, $36,750.
e. Paid rent on office and equipment for the month, $4,000.
f. Paid dividends, $3,000.
g. Paid automobile expenses (including rental charge) for month, $2,500, and miscellaneous expenses, $1,200.
h. Paid office salaries, $3,750.
i. Determined that the cost of supplies on hand was $1,550; therefore, the cost of supplies used was $1,650.

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
2. Prepare an income statement for October, a retained earnings statement for October, and a balance sheet as of October31.

  • CreatedFebruary 28, 2014
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