Answer:
Opened a business bank account with a deposit of $25,000 from personal funds.
Dr Cash 25,000
Cr Schatz, Pamela, capital 25,000
the account balances:
Cash 25,000
Schatz, Pamela, capital 25,000
Purchased office supplies on account, $2,600.
Dr Supplies 2,600
Cr Accounts payable 2,600
the account balances:
Supplies 2,600
Accounts payable 2,600
Received cash from fees earned for managing rental property, $7,030.
Dr Cash 7,030
Cr Service revenue 7,030
the account balances:
Cash 32,030
Service revenue 7,030
Paid rent on office and equipment for the month, $3,190.
Dr Rent expense 3,190
Cr Cash 3,190
the account balances:
Cash 28,840
Rent expense 3,190
Paid creditors on account, $1,180.
Dr Accounts payable 1,180
Cr Cash 1,180
the account balances:
Cash 27,660
Accounts payable 1,420
Billed customers for fees earned for managing rental property, $5,910.
Dr Accounts receivable 5,910
Cr Service revenue 5,910
the account balances:
Accounts receivable 5,910
Service revenue 12,940
Paid automobile expenses (including rental charges) for the month, $710, and miscellaneous expenses, $350.
Dr Rent expense 710
Dr Miscellaneous expenses 350
Cr Cash 1,060
the account balances:
Cash 26,600
Rent expense 3,900
Miscellaneous expenses 350
Paid office salaries, $2,250.
Dr Wages expense 2,250
Cr Cash 2,250
the account balances:
Cash 24,350
Wages expense 2,250
Determined that the cost of supplies on hand was $1,540; therefore, the cost of supplies used was $1,060.
Dr Supplies expense 1,060
Cr Supplies 1,060
the account balances:
Supplies 1,540
Supplies expense 1,060
<u>Withdrew cash for personal use, $2,130.</u>
Dr Schatz, Pamela, drawings 2,130
Cr Cash 2,130
the account balances:
Cash 22,220
Schatz, Pamela, capital 22,870
