On August 1, 20Y9, 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 $35,000 in exchange for common stock. b. Purchased supplies on account, $2,750. c. Paid creditor on account, $1,800. d. Earned sales commissions, receiving cash, $52,800. e. Paid rent on office and equipment for the month, $4,500. f. Paid dividends, $3,000. g. Paid automobile expenses for month, $1,100, and miscellaneous expenses, $1,200. h. Paid office salaries, $5,250. i. Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000. Required: 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: 2. a. Prepare an income statement for August. 2. b. Prepare a statement of stockholders' equity for August. 2. c. Prepare a balance sheet as of August 31. Accounts, Labels and Amount Descriptions Accounts Accounts payable Automobile expense Cash Common stock Dividends Miscellaneous expense Rent expense Retained earnings Salaries expense Sales commissions Supplies Accounts, Labels and Amount Descriptions Labels August 31, 20Y9 Expenses For the Month Ended August 31, 20 Y9 Amount Descriptions Balances, August 1, 20Y9 Balances, August 31, 20Y9 Issued common stock Net income Net loss Total assets Total expenses Accounts, Labels and Amount Descriptions Amount Descriptions Balances, August 1, 20Y9 Balances, August 31, 20 Y9 Issued common stock Net income Net loss Total assets Total expenses Total liabilities and stockholders' equity Total stockholders' equity 1. Indicate the effect of each transaction and the balances after each transaction, using the tabular headings in the exhibit below. Accounting Equation Grid Instructions Stockholders' Equity Sales Salaries Supplies \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ Bal. } \\ \hline h. & & & & & & \\ \hline \multicolumn{7}{|l|}{ Bal. } \\ \hline \multicolumn{7}{|l|}{ i. } \\ \hline \multicolumn{7}{|l|}{ Bal. } \\ \hline & & & Accounts & Common & & Sales \\ \hline & Cash & + Supplies & = Payable & + Stock & - Dividends & + Commissions \\ \hline \end{tabular} 2. a. Prepare an income statement for August. Income Statement Instructions 2.b. Prepare a statement of stockholders' equity for August. Statement of Stockholders' Equity Instructions 2. c. Prepare a balance sheet as of August 31