Lyons, Inc., provides consulting services. A few of the company's business transactions occurring during June are described as follows.

1. On June 1, the company billed customers $6,000 on account for consulting services rendered. Customers are required to make full payment within 30 days. (Lyons, Inc., uses an account entitled Consulting Revenue when billing customers.)

2. On June 3, the company purchased office supplies costing $3,840, paying $960 cash and charging the remainder on the company's 30-day account at Office Warehouse. The supplies are expected to last several months.

3. On June 5, the company returned to Office Warehouse $120 of supplies that were not needed. The return of these supplies reduced by $120 the amount owed to Office Warehouse.

4. On June 17, the company issued an additional 1,000 shares of capital stock at $6 per share. The cash raised will be used to purchase new equipment in September.

5. On June 22, the company received $1,440 cash from customers it had billed on June 1.

6. On June 29, the company paid its outstanding account payable to Office Warehouse.

7. On June 30, a cash dividend totaling $2,160 was declared and paid to the company's stockholders.

Instructions

a. Prepare an analysis of each of these transactions. Transaction 1 serves as an example of the form of analysis to be used.

1. (a) The asset Accounts Receivable was increased. Increases in assets are recorded by debits. Debit Accounts Receivable $6,000.

(b) Revenue has been earned. Revenue increases owners' equity. Increases in owners' equity are recorded by credits. Credit Consulting Revenue $6,000.

b. Prepare journal entries, including explanations, for these transactions.