Problem: Duane Mays established an insurance agency on July 1 of the current year and completed the following transactions during July.
1. opened a business bank account with a deposit of $18,000 from personal funds.
2. purchased supplies on account. 950.00
3. paid creditors on account 575.00
4. recieved cash from fees earned on insurance commissions, 4,250
5. paid rent on office and equipment for the month- 1,200
6. paid automobile expenses for month, 600 and miscellaneous expenses 375
7. paid sallaries 1,500
8. determined that the cost of supplies on hand was 225 therefore, the cost of supplies used was 725
9. billed insurance companies for sales commissions earned-6,350
10. withdrew cash for personal use, 2,0000
cash balance at the end of july-16,000
indicate the effect of each transaction and the balances after each transaction, using the following tabular heardings
Assets= Liabilities+owners equity