On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July. A. Opened a business bank account with a deposit of $24,000 from personal funds.
B. Purchased office supplies on account, $2,200.
C. Paid creditor on account, $1,250.
D. Earned sales commissions, receiving cash, $42,000.
E. Paid rent on office and equipment for the month, $3,500.
F. Withdrew cash for personal use, $3,200.
G. Paid automobile expenses (including rental charge) for month, $3,200, and miscellaneous expenses, $1,900.
H. Paid office salaries, $4,400.
I. Determined that the cost of supplies on hand was $800; therefore, the cost of supplies used was $1,400.
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 +Owner’s EquityPatPat AccountsGlenn, Glenn,+ Supplies= Payable+ Capital- Drawing+ Commissions- Expense- Expense- Expense- Expense- Expense2. Prepare an income statement for July, a statement of owner’s equity for July, a balance sheet as of July 31. Refer to the list of Accounts on the accounting equation grid and the lists of Labels 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 has been incurred, enter that amount as a negative number using a minus sign. You will not need to enter colons (:) on the statements. LabelsExpensesFor the Month Ended July 31, 2016July 31, 2016Amount DescriptionsDecrease in owner’s equityIncrease in owner’s equityInvestment on July 1, 2016Less withdrawalsNet incomeNet income for JulyNet lossNet loss for JulyPat Glenn, capital, July 1, 2016Pat Glenn, capital, July 31, 2016Plus withdrawalsTotal assetsTotal expensesTotal liabilities and owner’s equity1. Indicate the effect of each transaction and the balances after each transaction, using the tabular headings. 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 +Owner’s EquityPatPat AccountsGlenn, Glenn,+ Supplies= Payable+ Capital- Drawing+ Commissions- Expense- Expense- Expense- Expense- Expensea. a. b. b. Bal. - Bal. c. c. Bal. - Bal. d. d. Bal. - Bal. e. e. Bal. - Bal. f. f. Bal. - Bal. g. g. Bal. - Bal. h. h. Bal. - Bal. i. i. Bal. - Bal.2. Prepare an income statement for July 31. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Refer to the list of Accounts on the accounting equation grid and the lists of Labels 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. Half Moon RealtyIncome Statement1234567892. Prepare a statement of owner’s equity for the month ended July 31, 2016. If a net loss has been incurred or there has been a decrease in owner’s equity, enter that amount as a negative number using a minus sign. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Half Moon RealtyStatement of Owner’s Equity12345672. Prepare a balance sheet as of July 31, 2016. Refer to the list of Accounts on the accounting equation grid and the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Half Moon RealtyBalance Sheet1Assets2345Liabilities67Owner’ s equity89