On June 1 of the current year, Chris Bates established a business to manage rental property....

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On June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June: a. Opened a business bank account with a deposit of $75,000 in exchange for common stock. b. Purchased office supplies on account, $2,200. C. Received cash from fees earned for managing rental property, $19,500. d. e. f. g. Paid rent on office and equipment for the month, $8,000. Paid creditors on account, $1,850. Billed customers for fees earned for managing rental property, $6,000. Paid automobile expenses for month, $1,500, and miscellaneous expenses, $800. h. Paid office salaries, $5,500. i. Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,650. j. Paid dividends, $4,000. INSTRUCTIONS 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: On June 1 of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June: a. Opened a business bank account with a deposit of $75,000 in exchange for common stock. b. Purchased office supplies on account, $2,200. C. Received cash from fees earned for managing rental property, $19,500. d. e. f. g. Paid rent on office and equipment for the month, $8,000. Paid creditors on account, $1,850. Billed customers for fees earned for managing rental property, $6,000. Paid automobile expenses for month, $1,500, and miscellaneous expenses, $800. h. Paid office salaries, $5,500. i. Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,650. j. Paid dividends, $4,000. INSTRUCTIONS 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

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Transaction Effect Assets Liabilities Equity a Increase 75000 0 75000 b Increase 2200 ... View the full answer