Ken Stone launched a new business, Ken’s Maintenance Co., that began operations on June 1. The following transactions were completed by the company during that first month.

June 1 K. Stone invested $120,000 cash in the company.

2 The company rented a furnished office and paid $4,500 cash for June’s rent.

4 The company purchased $2,400 of equipment on credit.

6 The company paid $1,125 cash for this month’s advertising of the opening of the business.

8 The company completed maintenance services for a customer and immediately collected $750 cash.

14 The company completed $6,300 of maintenance services for City Center on credit.

16 The company paid $900 cash for an assistant’s salary for the first half of the month.

20 The company received $6,300 cash payment for services completed for City Center on June 14.

21 The company completed $3,500 of maintenance services for Skyway Co. on credit.

24 The company completed $825 of maintenance services for Comfort Motel on credit.

25 The company received $3,500 cash payment from Skyway Co. for the work completed on June 21.

26 The company made payment of $2,400 cash for equipment purchased on June 4.

28 The company paid $900 cash for an assistant’s salary for the second half of this month.

29 K. Stone withdrew $2,000 cash from the company for personal use.

30 The company paid $120 cash for this month’s telephone bill.

30 The company paid $525 cash for this month’s utilities.

Required

1. Arrange the following asset, liability, and equity titles in a table like Exhibit 1.9: Cash; Accounts Receivable; Equipment; Accounts Payable; K. Stone, Capital; K. Stone, Withdrawals; Revenues; and Expenses.

2. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

3. Prepare a June income statement, a June statement of owner’s equity, a June 30 balance sheet, and a June statement of cash flows.