Assessing Financial Statement Effects of Transactions

DeFond Services, a firm providing art services for advertisers, began business on June 1. The following accounts are needed to record the transactions for June: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; Utilities Expense; and Wages Expense. Record the following transactions for June using the financial statement effects template. (Record each transaction in the order it appears.)

June1M. DeFond invested $18,000 cash to begin the business in exchange for common stock.

2Paid $1,425 cash for June rent.

3Purchased $9,600 of office equipment on credit.

6Purchased $5,700 of art materials and other supplies; the company paid $2,700 cash with the remainder due within 30 days.

11Billed clients $7,050 for services rendered.

17Collected $4,875 cash from clients on their accounts billed on June 11.

19Paid $4,500 cash toward the account for office equipment (see June 3).

25Paid $1,350 cash for dividends.

30Paid $525 cash for June utilities.