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.

Respuesta :

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

The indication of the effect of each transaction of Western Realty for the first month of August, 20Y9, and the inclusion of the account balances after each transaction are as follows:

                                                             Assets   = Liabilities + Stockholders’

                                                                                                        Equity

a. Cash + Common Stock                  $35,000             $0     +     $35,000

Balances                                            $35,000             $0      +    $35,000

b. Supplies + Accounts Payable          $2,750        $2,750

Balances                                             $37,750        $2,750     +  $35,000

c. Accounts Payable + Cash               -$1,800        -$1,800

Balances                                           $35,950            $950    +  $35,000

d. Cash  + Sales Commissions         $52,800                            $52,800

Balances                                           $88,750           $950     +  $87,800

e. Rent Expense + Cash                    -$4,500                             -$4,500

Balances                                           $84,250          $950    +  $83,300

f. Dividends + Cash                           -$3,000                             -$3,000

Balances                                           $81,250         $950     +  $80,300

g. Automobile Expenses + Cash        -$1,100                              -$1,100

Balances                                           $80,150        $950     +   $79,200

g. Miscellaneous Expenses + Cash  -$1,200                            -$1,200

Balances                                          $78,950       $950      +  $78,000

h. Salaries Expense + Cash            -$5,250                            -$5,250

Balances                                         $73,700        $950    +    $72,750

i. Supplies Expense + Supplies      -$1,000                            -$1,000

Balances                                        $72,700        $950    +    $71,750

Data Analysis:

a. Cash $35,000 Common Stock $35,000

b. Supplies $2,750 Accounts Payable $2,750

c. Accounts Payable $1,800 Cash $1,800

d. Cash $52,800 Sales Commissions $52,800

e. Rent Expense $4,500 Cash $4,500

f. Dividends $3,000 Cash $3,000

g. Automobile Expenses $1,100 Cash $1,100

g. Miscellaneous Expenses $1,200 Cash $1,200

h. Salaries Expense $5,250 Cash $5,250

i. Supplies Expense $1,000 Supplies $1,000

Summary of Account Balances:

Cash = $70,950 ($72,700 - $1,750)

Supplies = $1,750($2,750 - $1,000)

Accounts payable = $950 ($2,750 - $1,800) CR

Common Stock = $35,000 CR

Sales Commissions = $52,800 CR

Rent Expense = $4,500

Dividends = $3,000

Automobile Expense = $1,100

Miscellaneous Expenses = $1,200

Salaries Expense = $5,250

Supplies Expense = $1,000

Totals                     $88,750  $88,750

Learn more about the effects of transactions on account balances at https://brainly.com/question/5055908