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On August 1, 2018, Brooke Kline established Western Realty. Brooke completed the following transactions during the month of August.

A.	Opened a business bank account with a deposit of $25,000 in exchange for common stock.
B.	Purchased office supplies on account, $2,050.
C.	Paid creditor on account, $1,100.
D.	Earned sales commissions, receiving cash, $42,500.
E.	Paid rent on office and equipment for the month, $2,600.
F.	Paid dividends, $3,700.
G.	Paid automobile expenses (including rental charge) for month, $3,050, and miscellaneous expenses, $1,900.
H.	Paid office salaries, $4,900.
I.	Determined that the cost of supplies on hand was $750; therefore, the cost of supplies used was $1,300.

Required:

1.

Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. In each transaction row (rows indicated by a letter), you must indicate the math sign (+ or -) in columns affected by the transaction. You will not need to enter math signs in the balance rows (rows indicated by Bal.). Entries of 0 (zero) are not required and will be cleared if entered.

Assets		= Liabilities +	Stockholders Equity
		Accounts	Common		Sales	Salaries	Rent	Auto	Supplies	Miscellaneous
Cash	+ Supplies	= Payable	+ Stock	- Dividends	+ Commissions	- Expense	- Expense	- Expense	- Expense	- Expense

	2. a. Prepare an income statement for August. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the list of Labels, Accounts and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. You will not need to enter colons (:) on the income statement.
	2. b. Prepare a retained earnings statement for August. Refer to the list of Labels, Accounts and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. The word Less or Add is not needed in the Retained Earnings Statement. If an amount is zero, enter "0".
	2. c. Prepare a balance sheet as of August 31. Refer to the list of Labels, Accounts and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading.

e on the bookmarks bar. Import bookmarks now.. false eBook Calculato DLite Dry Cleaners s owned and operated by Joel Palk. A building and squipment are currently being rented, pending espansion to neu facalties The achualt work of dtry clesning is done by another company at 598.000 Supplies, 58,300 Land, $73,000 Acounts Pavablb, $31 000 Comnon Stock $80 000 Business Itiansactices dunng July are summarized as fodows A Joel Palk invested additional cash in exchange for common stock with a deposit of $34 000 in the business bank accoun B. Paid 550.000 tor the purchase of land adjacent to land curently owned by D'Lte Dry Cleaners as a futuire building she C. Received cash from cash customers for dry cleaning revenue $33,125 D. Paid rent for the month, $7,000 E Purchased supplies on account $2 300 F. Paid credilors on account $22.200 G Charged customers for dry cleaning revenue on account, $$7,000 H. Received monthly invoice tor dry cleaning expense for July (to be pad on August 10) 528300 Pad te tlomg: wages xpense, S8 900, truck expense. S2.500 J. Received cash from customers on account, $83,000 K Determined that the cost of supplies on hand was $5 300 therefore, the cost of supplies used L Paid dividends $11,000 umites expense $1,600, miscellaneous expense, $2.600 during the month was 54 800 Required 1. Determine the smount of retained eamings as of July 1 of the current year 2 The assets, Sabilies, and stockholders equty as of July 1 are stated in equation form simalar to thast shovwn in hie chapter. in tatuler o below the equation, indicate increases and decreases resuting from esch tramsaction and the new balances after each ranaction neac brancaction row frows indicated by a ietter), you must indicate the math sign or)in oolumns affected by tme ransaction Yow wil not need to enter meth signs in the balance os (rowS indicasted by Bal.). Entries of O (zera) are not required and wil be cleared it entered a Peper ant ones ement for the month ended July 31, 2018 Riter tothe Ac ournaan me accounting equation god and to the ist ar Letels nd Arm urt Detrotons for the exact woring of the answer choices for text entnes Be sure to complete the statement heading rsnet oss has been incurred enter that amount ss a negstive number using a minus aign You wil not need to enter colons (J on the income for the month ended July 31, 2018 Refer to me Asts of Acccunts in the accounting eausiove gris and to the lst of Labels and Amount Descriptions for the exact wording of the answer choices for fext endies Be sure to complete me stelement heading ira net loss ia incurred or dividends were psid, enter ha amount as a negative number usng & anus sign 3e Prepare a balece.shest as of July 31, 2018 Reter to the Accounts in the accounting equation grid and to the st of Labels and Amount Desoriptions for the exact wording of the answer choices for text entries Be sure to complete the statement headng af Labels and Amount Desonjptions for the exact wording of the answer choices for text entnies Be aure to compiete the statemenr neading wil not need to enter colone Cj on the statehent

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