Question

On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July.

A.	Opened a business bank account with a deposit of $24,000 from personal funds.
B.	Purchased office supplies on account, $2,100.
C.	Paid creditor on account, $1,200.
D.	Earned sales commissions, receiving cash, $38,000.
E.	Paid rent on office and equipment for the month, $2,400.
F.	Withdrew cash for personal use, $3,700.
G.	Paid automobile expenses (including rental charge) for month, $3,200, and miscellaneous expenses, $1,700.
H.	Paid office salaries, $4,100.
I.	Determined that the cost of supplies on hand was $1,000; therefore, the cost of supplies used was $1,100.

create income statement

create statement of owners equity

create balance

Answer 1

Answer 1

Half Moon Realty

Income Statement

For the Month Ended July 31, 2019

Particulars	Amount	Amount
Sales commission received		38000
Expenses:
Rent expense	2400
Office salaries expense	4100
Automobile expense	3200
Supplies expense	1100
Miscellaneous expense	1700
Less: Total expense		12500
Net income		25500

Answer 2

Half Moon Realty

Statement of Owner's Equity

For the Month Ended July 31, 2019

Particulars	Amount	Amount
Pat Glenn Capital , July 1, 2019	24000
Add: Net income	25500	49500
Less: Withdrawls		3700
Balance as at July 31, 2019		45800

Answer 3

Half Moon Realty

Balance Sheet

July 31, 2019

Particulars	Amount
Assets:
Cash	45700
Supplies	1000
Total Assets	46700
Liabilities:
Accounts payable	900
Owner's equity:
Pat Glen, Capital	45800
Total Liabilities & Owner' s Equity	46700

Working note:

Cash = a - c + d - e - f - g - h

= 24000 - 1200 + 38000 - 2400 - 3700 - 4900 - 4100

= 45700

Accounts payable = b - c

= 2100 - 1200

= 900