On April 1, 20Y7, 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 from personal funds.

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

c. Paid automobile expenses (including rental charge) for the month, $1,350, and miscellaneous expenses, $600.

d. Purchased office supplies on account, $1,200.

e. Earned sales commissions (revenue) from selling real estate, receiving cash, $19,800.

f. Paid creditor on account, $750.

g. Paid office salaries, $2,500.

h. Withdrew cash for personal use, $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 statement of owner’s equity for April, and a balance sheet as of April 30.

Transcribed Image Text:

= Liabilities + Owner's Equity Assets Maria Maria Supplies Еxpense Adams, Sales Rent Salaries Auto Misc. Accounts Adams, Cash + Supplies Payable + Capital Drawing + Commissions Expense Expense Expense Expense %3D