Creative Designs, a firm providing art services for advertisers, began business on June 1. The following accounts in its general ledger 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 Salaries Expense.

a. Using the accounting equation, record each of the transactions in columnar format.

b. Use journal entries to record the following transactions for June in the general journal.

June	1	Lisa Ryan invested $22,000 cash to begin the business; she received common stock for her investment.
	2	Paid rent for June, $1,950.
	3	Purchased office equipment on account, $7,400.
	6	Purchased art materials and other supplies costing $4,800; paid $2,800 down with the remainder due within 30 days.
	11	Billed clients for services, $10,000.
	17	Collected $4,250 from clients on account.
	19	Paid $4,000 on account to office equipment company (see June 3 transaction).
	25	Lisa Ryan received a $3,000 dividend.
	30	Paid utility bill for June, $1,350.
	30	Paid salaries for June, $3,500.

		Cash	+	Accounts Receivable	+	Supplies	+	Office Equipment	=	Accounts Payable	+	Common Stock	+	Retained Earnings
June	1	$Answer		$Answer		$Answer		$Answer		$Answer		$Answer		$Answer
	2	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	3	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	6	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	11	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	17	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	19	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	25	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	30	Answer		Answer		Answer		Answer		Answer		Answer		Answer
	30	Answer		Answer		Answer		Answer		Answer		Answer		Answer
		$Answer	+	$Answer	+	$Answer	+	$Answer	=	$Answer	+	$Answer	+	$Answer

Date		Description	Debit	Credit
June	1	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	$Answer	$Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Owner purchased common stock for cash.
	2	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Paid June rent.
	3	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Purchased office equipment on account.
	6	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Purchased supplies; paid down payment with balance due in 30 days.
	11	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Billed clients for services.
	17	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Collections from clients on account.
	19	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Payment on account.
	25	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Dividend paid to shareholders.
	30	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Paid utilities bill for June.
	30	AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashCommon StockDividendsOffice EquipmentRent ExpenseSalaries ExpenseService Fees EarnedSuppliesUtilities Expense	Answer	Answer
		Paid salaries for June.