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PR 1-4B Transactions: financial statements objs. 4, 5 2. Net income: $9,200 42 Chapter 1 Assets On August 1, 2010, Tanja Zier established Royal Realty. Tanja completed the following transactions during the month of August: a. Opened a business bank account with a deposit of $20,000 from personal funds. b. Purchased supplies (pens, file folders, paper, etc.) on account, $2,650. c. Paid creditor on account, $1,600. d. Earned sales commissions, receiving cash, $28,750. e. Paid rent on office and equipment for the month, $4,200. f. Withdrew cash for personal use, $5,000. g. Paid automobile expenses (including rental charge) for month, $2,500, and miscel- laneous expenses, $1,200. (continued) Introduction to Accounting and Business h. Paid office salaries, $10,000. i. Determined that the cost of supplies on hand was $1,000; therefore, the cost of sup- plies used was $1,650. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: - Liabilities + Accounts Tanja Zier, Tanja Zier, Cash + Supplies Payable + Capital Drawing Owner's Equity Office Sales Salaries Rent Auto Supplies Misc. Commissions+ Expense - Expense - Expense - Expense - Expense 2. Prepare an income statement for August, a statement of owner's equity for August, and a balance sheet as of August 31