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On April 1 of the current year, Morgan Jones established a business to manage rental property. She completed the following transactions during April: Opened a business bank account with a deposit of $60,000 in exchange for common stock. Purchased office supplies on account, $1,800. Received cash from fees earned for managing rental property, $22,300. Paid rent on office and equipment for the month, $7,000. Paid creditors on account, $1,100. Billed customers for fees earned for managing rental property, $3,600. Paid automobile expenses for month, $750, and miscellaneous expenses, $1,000. Paid office salaries, $4,000. Determined that the cost of supplies on hand was $250; therefore, the cost of supplies used was $1,550. Paid dividends, $5,000. Required:

Respuesta :

A company's economic and non-economic transactions are recorded

in the company's accounting journal from which the debit and credit

balances of the company can be found

Please find attached the table showing the transaction descriptions, transaction effect and the balance after each transaction

The reason why the values in the table are correct is as follows;

Part of the question: The concluding parts of the question as obtained online is as follows;

a) Indicate the transaction and balance of each transaction

The transaction descriptions, effects and balances are as follows:

  • Cash: The money available as cash = 60,000 + 22,300 - 7,000 - 1,100 - 1,750 - 4,000 - 5,000 = 63,450
  • Account Receivables: The amount due to the company not yet received  = Bill to customers for managing rental property = $3,600
  • Supplies: Amount of supplies on hand = $1,800 - $1,550 = $250
  • Account payable: The amount to be paid for supplied goods and services = $1,800 - $1,100 = $700
  • Common stock: The security held as the company owner(s) = Money with which the bank account was opened = $60,000
  • Dividends: The amount paid as dividends = $5,000
  • Fees Earned: The amount earned as fees = $22,300 + $3,600 = $25,900
  • Rent Expense: Amount paid as rent = $7,000
  • Salary Expense: The amount paid as salary = $4,000
  • Supplies Expense: The cost of supplies = $1,550
  • Automobile Expense: The amount used for automobile = $750
  • Miscellaneous Expense: Miscellaneous expenses for goods and services = $1,000

Please find attached the completed table created with MS Excel

Learn more about journal entry here:

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