On April 1, 2010, Ryan Barnes established Coyote Realty. Ryan completed the following transactions during the month of April:

a. Opened a business bank account with a deposit of $25,000 from personal funds.

b. Paid rent on office and equipment for the month, $3,200.

c. Paid automobile expenses (including rental charge) for month, $1,200, and miscellaneous expenses, $800.

d. Purchased supplies (pens, file folders, and copy paper) on account, $900.

e. Earned sales commissions, receiving cash, $24,000.

f. Paid creditor on account, $400.

g. Paid office salaries, $3,600.

h. Withdrew cash for personal use, $3,000.

i. Determined that the cost of supplies on hand was $150; therefore, the cost of supplies used was $750.

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 Liabilities + Assets Ryan Barnes, Drawing + Commissions Ryan Barnes, = ayable + Capital Office Salaries Accounts Sales Rent Expense Auto Expense Misc. Expense Supplies Expense Cash + Supplies Expense