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Pr1-1,Pr1-2a

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PR1-1A
On September 1 of the current year, Maria Edsll established a business to manage rental property. She completed the following transactions during September:
a. Opened a business bank account with a deposit of $40,000 from personal funds.
b. Purchased supplies (pens, file folders, and copy paper) on account, $2,200.
c. Received cash from fees earned for managing rental property, $6,000.
d. Paid rent on office and equipment for the month, $2,700.
e. Paid creditors on account, $1,000.
f. Billed customers for fees earned for managing rental property, $5,000.
g. Paid automobile expenses (including rental charges) for month, $600, and miscellaneous expenses, $300.
h. Paid office salaries, $1,900.
i. Determined that the cost of supplies on hand was $1,300; therefore, the cost of supplies used was $900.
j. Withdrew cash for personal use, $1,800.

.:.

1. Assets = Liabilities + Owner’s Equity

Maria Maria Accts. Accts. Edsall, Edsall, Fees Rent Salaries Supplies Auto Misc. Cash + Rec. + Supplies = Payable + Capital – Drawing + Earned – Exp. – Exp. – Exp. – Exp. – Exp.
a. + 40,000 + 40,000
b. + 2,200 + 2,200
Bal. 40,000 2,200 2,200 40,000
c. + 6,000 + 6,000
Bal. 46,000 2,200 2,200 40,000 6,000
d. – 2,700 – 2,700
Bal. 43,300 2,200 2,200 40,000 6,000 – 2,700
e. – 1,000 – 1,000
Bal. 42,300 2,200 1,200 40,000 6,000 – 2,700
f. + 5,000 + 5,000
Bal. 42,300 5,000 2,200 1,200 40,000 11,000 – 2,700
g. – 900 – 600 – 300
Bal. 41,400 5,000 2,200 1,200 40,000 11,000 – 2,700 – 600 – 300
h. – 1,900 – 1,900
Bal. 39,500 5,000 2,200 1,200 40,000 11,000 – 2,700 – 1,900 – 600 – 300
i. – 900 – 900
Bal. 39,500 5,000 1,300 1,200 40,000

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