On June $1$ of the current year, Chris Bates established a business to manage rental property. The following transactions were completed during June:

Opened a business bank account with a deposit of $$50,000$ in exchange for common stock.

Purchased office supplies on account, $$2,980.$

Received cash from fees earned for managing rental property, $$8,240.$

Paid rent on office and equipment for the month, $$3,650.$

Paid creditors on account, $$1,350.$

Billed customers for fees earned for managing rental property, $$6,760.$

Paid automobile expenses for month, $$810,$ and miscellaneous expenses, $$410.$

Paid office salaries, $$2,570.$

Determined that the cost of supplies on hand was $$1,760$; therefore, the cost of supplies used was $$1,220.$

Paid dividends, $$2,430.$

Required:

$1.$ Indicate the effect of each transaction and the balances after each transaction:

If an amount box does not require an entry, leave it blank.

For those boxes in which you must enter subtractive or negative numbers use a minus sign. $($Example: $-300)$

Answer rating: 100% (QA)

Here is the breakdown of the effects of each transaction on the accounts and the balances after each transaction 1 Opened a business bank account with ... View the full answer