Les Stanley established an insurance agency on July 1,20Y5, and completed the following transactions during...
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Les Stanley established an insurance agency on July 1,20Y5, and completed the following transactions during July: 1. Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock. 2. Borrowed $120,000 by issuing a note payable, 3. Received cash from fees earned, $40,000. 4. Paid rent on office and equipment for the month, $5,000. 5. Provided service to customers on account, $20,000. 6. Paid automobile expense for the month, $3,500, and miscellaneous expense, $1,000. 7. Paid office salaries, $6,500. 8. Paid interest on the note payable, $500. 9. Purchased land as a future building site, paying cash of $100,000. 10. Paid dividends, $3,000. Instructions Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework
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