On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April: Opened a business bank account with a deposit of $30,000 in exchange for common stock.
Purchased supplies on account, $3,000.
Paid creditor on account, $1,900.
Earned sales commissions, receiving cash, $30,600.
Paid rent on office and equipment for the month, $6,000.
Paid dividends, $9,000.
Paid automobile expenses for month, $2,880, and miscellaneous expenses, $1,380.
Paid office salaries, $3,610.
Determined that the cost of supplies on hand was $1,010; therefore, the cost of supplies used was $1,990.
Required:Indicate the effect of each transaction and the balances after each transaction.
a. Prepare an income statement for April.
b. Prepare a statement of stockholders' equity for April.
c. Prepare a balance sheet as of April 30.