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Werner Realty Company began the month with the following balance sheet.Cash$135,000Liabilities$405,000Noncash assets1,012,500Contributed capital202,500Earned capital540,000Total assets$1,147,500Total...

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Accounting

Werner Realty Company began the month with the following balance sheet.

Cash$135,000Liabilities$405,000
Noncash assets1,012,500Contributed capital202,500


Earned capital540,000
Total assets$1,147,500Total liabilities and equity$1,147,500

Following are summary transactions that occurred during the current month.

1. The company purchased $27,000 of supplies on credit.
2. The company received $36,000 cash from a new customer for services to be performed next month.
3. The company paid $27,000 cash to cover office rent for two months (the current month and the next).
4. The company billed clients for $112,500 of work performed.
5. The company paid employees $27,000 cash for work performed.
6. The company collected $112,500 cash from accounts receivable in transaction 4.
7. The company recorded $18,000 depreciation on its equipment.
8. At month-end, $9,000 of supplies purchased in transaction 1 are still available; no supplies were available when the month began.

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