On August $1,20$Y$9,$ Brooke Kline established Western Realty. Brooke completed the following 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.$

Required:

$1.$ Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

Assets $=$ Liabilities $+$ Stockholders$$ Equity

Accounts Common Sales Salaries Rent Auto Supplies Miscellaneous

Cash $+$ Supplies $=$ Payable $+$ Stock $-$ Dividends $+$ Commissions $-$ Expense $-$ Expense $-$ Expense $-$ Expense $-$ Expense

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

$2.$ b$.$ Prepare a statement of stockholders$$ equity for August.

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