Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March:
Opened a business bank account with a deposit of $50,000 from personal funds.
Purchased supplies on account, $4,000.
Paid creditors on account, $2,300.
Received cash from fees earned on insurance commissions, $13,800.
Paid rent on office and equipment for the month, $5,000.
Paid automobile expenses for month, $1,150, and miscellaneous expenses, $300.
Paid office salaries, $2,500.
Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300.
Billed insurance companies for fees earned for commissions, $12,500.
Withdrew cash for personal use, $3,900.
Required:
1. Indicate the effect of each transaction and the balances after each transaction. 2. Determine the net income for March.
3. March's transactions increased or decreased Amy Austin's capital to?
Answers: 3
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Amy Austin established an insurance agency on March 1 of the current year and completed the followin...
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