Accounting transactions – effects on financial statements
Duane Mays established an insurance agency on July 1 of the current year and completed the following transactions during July.
a, opened a business bank account with a deposit of $18,000 from personal funds.
b-purchased supplies on account. 950.00
c-paid creditors on account 575.00
d recieved cash from fees earned on insurance commissions, 4,250
e- paid rent on office and equipment for the month- 1,200
f paid automobile expenses for month, 600 and miscellaneous expenses 375
g paid sallaries 1,500
h determined that the cost of supplies on hand was 225 therefore, the cost of supplies used was 725
i- billed insurance companies for sales commissions earned-6,350
j- withdrew cash for personal use, 2,0000
cash balance at the end of july-16,000
indicate the effect of each transaction and the balances after each transaction, using the following tabular heardings
Assets= Liabilities+owners equity