Fill in journal entries to summarize the following transactions as they affect the accounting equation.Then prepare the income statement and balance sheet for the first year.
Ana Urban established an insurance agency of the current year.
a.Opened a bank account with a deposit of $40,000 from personal funds in exchange for stock.
b.Purchased supplies on account, $1500.
c.Paid creditors on account, $800.
d.Received cash from fees earned on insurance commissions, $7,250.
e.Paid rent on office and equipment, $2,500 for the month.
f.Paid automobile expense for the month, $1,000; and miscellaneous expenses, $9,350.
g.Paid office salaries, $2,000.
h.Determined that the cost of supplies on hand was $400; therefore, the cost of supplies used was $1,100.
i.Billed insurance companies for sales commissions earned, $9,350.
j.Paid $3,000 in dividends