Question

On August 1, 20Y9, 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 tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.

Answer 1

Answer:

Explanation:

Income statement

Sales commission                          52,800

Expenses :  

Rent expense                                   -4,500

Automobile expense                           -1,100

Miscellaneous expense                   -1,200

Office salaries                                   -5,250

Supplies expense                           -1,000

Net income                                      $39,750

Western Realty

Statement of Stockholders' Equity

For the month ended August 31, 2019

                                  Common Stock  Retained Earnings    Total

1  Balances, August 1,2019    35,000                                  35,000

2  Net income                                                39,750           39,750

3  Dividends                                                  -3,000            -3,000

4  Balance August 31, 2019      $35,000      $36,750       $71,750