On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: a. Opened a business bank account with a deposit of $60,000 in exchange for common stock. b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $22,300. d. Paid rent on office and equipment for the month, $7,000. e. Paid creditors on account, $1,100. f. Billed customers for fees earned for managing rental property, $3,600. g. Paid automobile expenses for month, $750, and miscellaneous expenses, $1,000. h. Paid office salaries, $4,000. 1. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. J. Paid dividends, $5,000. Required:
1. Indicate the effect of each transaction and the balances after each transaction: For those boxes in which no entry is required, leave the box blank. For those boxes in which you must enter subtractive or negative numbers use a minus sign. (Example: -300) = Assets Liabilities Stockholders' Equit + Rent Sal.
Item Cash + Accounts Receivable + Supplies = Accounts Payable Common Stock - Dividends + Fees Earned Expense Expense