Instructions

On August $1,20$Y$9,$ Brooke Kline established Western Realty as a proprietorship. Brooke completed the following transactions during the month of August:

a$.$ Opened a bank account with a deposit of $$20,000$ in the name of Western Realty.

b$.$ Purchased supplies on account, $$1,850.$

c$.$ Paid creditor on account, $$1,150.$

d$.$ Earned sales commissions, receiving cash, $$43,000.$

e$.$ Paid rent on office and equipment for the month, $$2,900.$

f$.$ Withdrew cash for personal use, $$3,100.$

g$.$ Paid automobile expenses for month, $$3,000,$ and miscellaneous expenses, $$1,800.$

h$.$ Paid office salaries, $$3,900.$

i$.$ Determined that the cost of supplies on hand was $$850$; therefore, the cost of supplies used was $$1,000.$

Required:

Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

$2.$ a$.$ Prepare an income statement for August.

$2.$ b$.$ Prepare a statement of owner's equity for August.

$2.$ c$.$ Prepare a balance sheet as of August $31.$