Answer:
Opened a business bank account with a deposit of $50,000 from personal funds.
Assets (Bank) = +$50,000
Stockholder's equity (capital) = +$50,000
Purchased supplies on account, $4,000.
Assets (supplies) = +$4,000
Liabilities (Accounts Payable) = +$4,000
Paid creditors on account, $2,300.
Assets (cash) = -$2,300
Liabilities (Accounts Payable) = -$2,300
Received cash from fees earned on insurance commissions, $13,800.
Assets (cash) = +$13,800
Service Revenue = +$13,800
Paid rent on office and equipment for the month, $5,000.
Assets (cash) = -$5,000
Expenses (Operating Expenses) = +$5,000
Paid automobile expenses for the month, $1,150, and miscellaneous expenses, $300.
Assets (cash) = -$1,450
Expenses (Operating Expenses) = -$1,150
Expenses (Miscellaneous Expenses) = -$300
Paid office salaries, $2,500.
Assets (cash) = -$2,500
Liabilities (Wages Payable) = -$2,500
Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300.
Supplies expense = +$1,300
Billed insurance companies for sales commissions earned, $12,500.
Service Revenue = +$12,500
Assets (Accounts Receivable) = +$12,500
Withdrew cash for personal use, $3,900.
Assets (Bank) = -$3,900
Expenses (Personal Expense) = +$3,900
