accounting al statements Exercise 1-17 Michael Lee started his new executive coaching business on June 1 Consulting completed the following transactions during June 2016: 18 business on June 1. Lee Management ets, $31,750 Jun. 2 lichael Lee. The business gave owner's 2 3 4 5 9 12 18 21 Received $25.000 cash from owner Michael Lee. The business Bay equity in the business to Lee. Lee found a great downtown loft from which to operate. He paid cash for rent for the month of June, $3,000. Paid cash for a laptop, $1,000. The computer is expected to remain in service for four years. (Use the Equipment account for this transaction.) Purchased office furniture on account, $5,000. The furniture is expected to last for five years. Purchased supplies on account, $500. Performed consulting services for a client on account, $3,000. Paid utility expenses with cash, $250 Performed consulting services for a client and received cash of $2,000. Received $2,000 in advance for client services to be performed at a rate of $100 per day for a period of 20 days. (Use the liability account Unearned Revenue for this transaction. We will learn more about this account in Chapter 3.) Hired an office manager on a part-time basis. She will be paid $2,000 per month. She started work on Monday, June 25. Paid $500 cash for the supplies purchased on June 5. Collected a partial payment of $1,500 from the consulting client invoiced on June 9. Michael Lee withdrew $2,000 cash for personal use. 22 23 26 28 Required Analyze the effects of Lee Management Consulting's transactions on the accounting equation. Use the format of Exhibit 1-11, Panel B, on page 20, and use these headings: Cash; Accounts Receivable; Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; and Michael Lee, Capital. In Chapter 2, we will account for these same transactions in a different way--as the account- ing is actually performed in practice