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On January 1, 2014, Carlton Myers established Vista Realty.-(Answered)

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On January 1, 2014, Carlton Myers established Vista Realty. Carlton completed the following transactions during the month of January:

Opened a business bank account with a deposit of $34,000 in exchange for capital stock.

Purchased office supplies (pens, file folders, paper, etc.) on account, $3,430.

Paid creditor on account, $2,170.

Earned sales commissions, receiving cash, $35,050.

Paid rent on office and equipment for the month, $6,870.

Paid dividends, $11,000.

Paid automobile expenses (including rental charge) for month, $3,290, and miscellaneous expenses, $1,580.

Paid office salaries, $4,140.

Determined that the cost of supplies on hand was $1,160; therefore, the cost of supplies used was $2,270.

1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers.

2. Prepare an income statement for January.

3. Follow Example Exercise 1-5. Recall that the statement of retained earnings considers beginning retained earnings, net income for the year and dividends to calculate the ending retained earnings. The net income from the income statement is needed to complete the statement of retained earnings.

4. Follow Example Exercise 1-6. Recall that the balance sheet is a formal presentation of the accounting equation, such that total assets must equal total liabilities and stockholders' equity. Assets are items owned by the company, while liabilities are debts owed to creditors, and stockholders' equity represents the rights of the stockholder.


Transactions; Financial Statements

 

On January 1, 2014, Carlton Myers established Vista Realty. Carlton completed the following transactions during the month of January:

 

Opened a business bank...

 

Paper#9256723 | Written in 27-Jul-2016

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