on August 1, 2016, Bill Hudson established Heritage Realty, which completed the following transactions during the month:

a. Bill Hudson transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $30,000.

b. Paid rent on office and equipment for the month, $3,250.

c. Purchased supplies on account, $2,150.

d. Paid creditor on account, $875.

e. Earned sales commissions, receiving cash, $14,440.

f. Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $650.

g. Paid office salaries, $3,000.

h. Determined that the cost of supplies used was $1,300.

i. Paid dividends, $2,500.

Instructions :

7- Prepare Balance Sheet for the month of August 31, 2016.

**The answer must fit the form below

**note: Show all your calculation and working

Transcribed Image Text:

Balance Sheet Form Balance Sheet Accounts ASSETS Asset Accounts LIABILITIES Liability Accounts OWNER'S EQUITY + Owner's Equity Accounts Debit for Credit for Debit for Credit for Debit for Credit for increases (+) decreases (-) decreases (-) increases (+) decreases (-) increases (+) Balance Sheet Form Balance Sheet Accounts ASSETS Asset Accounts LIABILITIES Liability Accounts OWNER'S EQUITY + Owner's Equity Accounts Debit for Credit for Debit for Credit for Debit for Credit for increases (+) decreases (-) decreases (-) increases (+) decreases (-) increases (+)

Answer rating: 100% (QA)

Explanations 1 This transaction was for infusion of initial capital to the business Therefore we inc... View the full answer