On April 1, 2018, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:

A. Opened a business bank account with a deposit of $24,000 in exchange for common stock.

B. Paid rent on office and equipment for the month, $3,600.

C. Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600.

D. Purchased supplies on account, $1,200.

E. Earned sales commissions, receiving cash, $19,800.

F. Paid creditor on account, $750.

G. Paid office salaries, $2,500.

H. Paid dividends, $3,500.

I. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.

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 retained earnings statement for April, and a balance sheet as of April 30.

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Assets Liabilities Stockholders Equity Accounts Commo Payable + Stock -Dividends+ Commissions-Expense- Expense - Expense - Expense - Expense Sales Rent Salaries Supplies Mixc Cash+ Supplies