Bill Phinnes decides to open a cleaning and laundry service near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in equity.

Transactions

(1)Issued ordinary shares in exchange for $20,000 cash on June 1.

(2)Purchased laundry equipment for $5,000 paying $3,000 in cash and the remainder due in 30 days.

(3)Purchased laundry supplies for $1,200 cash.

(4)Received a bill from College News for $300 for advertising in the campus newspaper.

(5)Cash receipts from customers for cleaning and laundry amounted to $1,500.

(6)Paid salaries of $200 to student workers.

(7)Billed the Lion Soccer Team $200 for cleaning and laundry services.

(8)Paid $300 to College News for advertising that was previously billed in Transaction 4.

(9)Paid dividends of $700.

(10)Incurred utility expenses for month on account, $150.

Use this format:

Trans-AccountsAccountsShareRetained

actionCash +Receivable+Supplies+Equipment=Payable+Capital+Earnings