Transactions; Financial Statements
On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
Required:
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.
| Assets | = | Liabilities + | Owner's Equity | ||||||||||||||||||||
| Cash | + | Supplies | = | Accounts Payable |
+ | Pat Glenn, Capital |
- | Pat Glenn, Drawing |
+ | Sales Commissions |
- | Rent Expense | - | Office Salaries Expense |
- | Auto Expense |
- | Supplies Expense |
- | Miscellaneous Expense |
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| a. | |||||||||||||||||||||||
| b. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
| c. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
| d. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
| e. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
| f. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
| g. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
| h. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
| i. | |||||||||||||||||||||||
| Bal. | |||||||||||||||||||||||
repare an income statement for July.
| Half Moon Realty | ||
| Income Statement | ||
| For the Month Ended July 31, 2019 | ||
| Sales commissions | $ | |
| Expenses: | ||
| Rent expense | $ | |
| Office salaries expense | ||
| Automobile expense | ||
| Supplies expense | ||
| Miscellaneous expense | ||
| Total expenses | ||
| Net income | $ | |
Feedback
2. An income statement reports the revenues and expenses. When revenues are larger than the expenses, the difference is net income.
Prepare a statement of owner's equity for July. If an amount is zero, enter "0".
| Half Moon Realty | ||
| Statement of Owner's Equity | ||
| For the Month Ended July 31, 2019 | ||
| Pat Glenn, capital,July 1, 2019 | $ | |
| Investment on July 1, 2019 | $ | |
| Net income for July | ||
| Withdrawals | ||
| Increase in owners equity | ||
| Pat Glenn, capital, July 31, 2019 | $ | |
Feedback
3. Follow Example Exercise 1-5. Recall that the statement of owner's equity considers beginning owner capital, additional investments of the owner and net income for the year and withdrawals to calculate the ending capital. The net income from the income statement is needed to complete the statement of owner's equity.
Prepare a balance sheet as of July 31.
| Half Moon Realty | |
| Balance Sheet | |
| July 31, 2019 | |
| Assets | |
| Cash | $ |
| Supplies | |
| Total assets | $ |
| Liabilities | |
| Accounts payable | $ |
| Owner's Equity | |
| Pat Glenn, capital | |
| Total liabilities and owner's equity | $ |
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Tables: pastebin.com/xw0j1NAM
Data: pastebin.com/hnpFT3QR
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