On August Y 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 $ in exchange for common stock.
b Purchased supplies on account, $
c Paid creditor on account, $
d Earned sales commissions, receiving cash, $
e Paid rent on office and equipment for the month, $
f Paid dividends, $
g Paid automobile expenses for month, $ and miscellaneous expenses, $
h Paid office salaries, $
i Determined that the cost of supplies on hand was $; therefore, the cost of supplies used was $
Required:
Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
Assets Liabilities Stockholders Equity
Accounts Common Sales Salaries Rent Auto Supplies Miscellaneous
Cash Supplies Payable Stock Dividends Commissions Expense Expense Expense Expense Expense
a Prepare an income statement for August.
b Prepare a statement of stockholders equity for August.
c Prepare a balance sheet as of August
