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On August 1 2006 Shad Menard established Centillion Realty Shad completed the following transactions during the month of August Opened a business bank account with

On August 1, 2006, Shad Menard established Centillion Realty. Shad completed the following transactions during the month of August: a. Opened a business bank account with a deposit of $15,000 from personal funds. b. Paid rent on office and equipment for the month, $2,400. c. Paid automobile expenses (including rental charge) for month, $750, and miscellaneous expenses, $380. d. Purchased supplies (pens, file folders, and copy paper) on account, $950. e. Earned sales commissions, receiving cash, $17,350. f. Paid creditor on account, $580. g. Paid office salaries, $3,600. h. Withdrew cash for personal use, $1,500. i. Determined that the cost of supplies on hand was $275; therefore, the cost of supplies used was $675. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:  Explain the nature of each increase and decrease in owner s equity by an appropriate notation at the right of the amount. 2. Prepare an income statement for August, a statement of owner s equity for August, and a balance sheet as of August31.

May 22 2020 View more View Less

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