On September 1 of the current year Maria Edsall

established
On September 1 of the current year, Maria Edsall 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.Instructions1. Indicate the effect of each transaction and the balances
after each transaction, using the following tabular headings:2. Briefly explain why the owner’s
investment and revenues increased owner’s equity, while withdrawals and expenses
decreased owner’s equity.3. Determine the net income for September.4. How much did
September’s transactions increase or decrease Maria Edsall’scapital?
View Solution:
On September 1 of the current year Maria Edsall established
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edsall-established/

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