On August 1, 2018, Brooke Kline established Western Realty. Brooke

On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following $39,750 transactions during the month of August:
A. Opened a business bank account with a deposit of $35,000 in exchange for common stock.
B. Purchased supplies on account, $2,750.
C. Paid creditor on account, $ 1,800.
D. Earned sales commissions, receiving cash, $52,800.
E. Paid rent on office and equipment for the month, $4,500.
F. Paid dividends, $3,000.
G. Paid automobile expenses for month, $1,100, and miscellaneous expenses, $1,200.
H. Paid office salaries, $5,250.
I. Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
On August 1, 2018, Brooke Kline established Western Realty. Brooke

2. Prepare an income statement for August, a retained earnings statement for August, and a balance sheet as of August 31.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...