Transactions
Amy Austin established an insurance agency on March 1 of the current year and completed the following transactions during March:
a. Opened a business bank account with a deposit of $50,000 in exchange for common stock.
b. Purchased supplies on account, $4,000.
c. Paid creditors on account, $2,300.
d. Received cash from fees earned on insurance commissions, $13,800.
e. Paid rent on office and equipment for the month, $5,000.
f. Paid automobile expenses for month, $1,150, and miscellaneous expenses, $300.
g. Paid office salaries, $2,500.
h. Determined that the cost of supplies on hand was $2,700; therefore, the cost of supplies used was $1,300.
i. Billed insurance companies for sales commissions earned, $12,500.
j. Paid dividends, $3,900. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: