Hank Seta graduated from college in May 1990 with a degree in architecture. On June 1, he invested \(\$ 4,500\) in a new business under the name Hank Seta, Architect. Financial statements for the business will be prepared at the end of each month. The following transactions occurred during June.

June 1 Rented the furnished office and equipment of an architect who was retiring, paying \(\$ 900\) cash for June's rent.

1 Purchased drafting supplies for cash, \(\$ 115\).

3 Paid \(\$ 150\) for June's janitorial expense.

6 Completed architectural work for a client and immediately collected \(\$ 375\) cash for the work done.

9 Completed architectural work for Hills Realty on credit, \(\$ 1,150\).

16 Paid the draftsman's salary for the first half of June, \(\$ 750\).

19 Received payment in full for the work completed for Hills Realty on June 9 .

21 Completed architectural work for Northern Contractors on credit, \(\$ 1,200\).

June 22 Purchased additional drafting supplies on credit, \(\$ 100\).
24 Completed architectural work for Ann Trent on credit, \(\$ 900\).
28 Purchased on credit the service of having blueprint copies made; the copies (of architectural plans) were delivered to customers. Cost was \(\$ 140\).
29 Received payment in full from Northern Contractors for the work completed on June 21.
30 Paid for the drafting supplies purchased on June 22.
30 Paid the June telephone bill, \(\$ 135\).
30 Paid the June utilities expense, \(\$ 95\).
30 Paid the draftsman's salary for the second half of June, \(\$ 750\).
30 Purchased insurance protection for the next 12 months (beginning July 1) by paying an \(\$ 1,800\) premium. Since none of this insurance protection had been used up on June 30, it was at that time an asset called Prepaid Insurançe.
30 Mr. Seta withdrew \(\$ 1,000\) from the business for his personal use.
\section*{Required}
1. Arrange the following asset, liability, and owner's equity titles in an equation like Illustration 1-8: Cash; Accounts Receivable; Prepaid Insurance; Drafting Supplies; Accounts Payable; and Hank Seta, Capital. Include an Explanation column for changes in owner's equity.
2. Show the effects of the transactions on the elements of the equation by recording increases and decreases in the appropriate columns. Indicate an increase with a + and a decrease with a - before the amount. Do not determine new totals for the items of the equation after each transaction.
3. After recording the last transaction, determine and insert on the next line the final total for each item of the equation and determine if the equation is in balance.
4. Analyze the items in the last column of the equation and prepare a June income statement for the practice.
5. Prepare a June statement of changes in owner's equity.
6. Prepare a June 30 balance sheet.