For June:

Prepare the Balance Sheet for Karens Design

MAY ACTIVITY

You have been called in to help Karen Nicole who recently started a graphic design business known as Karen's Designs, Inc. Karen began operations on May 1, 2023, and had limited activity in her first month. Karen previously provided a summary of her activities during the month of May 2023 to you and you prepared her financial records and provided an explanation of the results. She was pleased with your work for the May activities and would like to engage your services for her June activities. Karen's Designs, Inc. also has the following transactions that took place during the month of June 2023: - June 2. Borrowed $20,000 from 1st Bank of Palm Beach and issued a 90 day note payable at 8% annual interest. - June 4. Received $4,200 cash from the Gaines Company as an advance payment for services to be provided. - June 5. Purchased a new computer on account from Brown's Computer Nook for $3,600. - June 6. Received cash from clients on account for $2,600. - June 9. Paid cash to the Mason Tribune for a newspaper advertisement, \$240. - June 13. Paid Brown's Computer Nook for part of the liability incurred on June 5, $690. - June 14. Paid part-time receptionist for two weeks' salary, \$1,100. - June 15. Established a line of credit for $10,000 with 1st Bank of Palm Beach. - June 17. Paid cash for supplies, $3,000. - June 18. Paid $150 for routine maintenance on the office equipment. - June 20. DunnRite Scholastic Enterprises, one of Karen's clients, was unable to make a payment on his account for $3,000. He issued a 60 day note at 12% annual interest to Karen's Design Inc. - June 20. Purchased additional office equipment on account from Cabrillo Office Supply store for $5,650. - June 20. Recorded services provided on account to various clients for the period of June 1-20, $4,360. - June 24. Received cash from clients for fees earned during the period of June 1-24, $6,100. - June 26. Received cash from clients on account, \$15,200. - June 27. Paid part-time receptionist for two weeks salary, $1,100. - June 30. Recorded cash from clients for fees earned for the period of June 25- 30, $3,450. - June 30. Recorded services provided on account for the period of June 20-June 30,$2,100. - June 30. Paid dividends of $2,500. Additional information for Karen's Designs, Inc. as of June 30, 2023 - Supplies on hand on June 30 is $2,130. - Monthly depreciation of all office equipment is $320. - Accrued receptionist salary on June 30 is $200. - Unearned fees on June 30 is $8,600. Note: Remember to record adjusting entries for prepaids in May (e.g., Insurance, Rent, etc.). May 31. Karen completed an inventory of supplies and determined that $2,100 of supplies are on hand. May 1. Karen invested $10,000 into her business in exchange for 5000 shares of common stock. May 2. Karen purchased a six month business insurance policy for $1,200. May 5. Karen signed a six months lease on a shared office for $500 per month. Karen paid the entire amount of the lease in advance. May 7. Karen paid $2500 for office supplies which are expected to last for five months. May 10. Karen borrowed $5,000 from a family friend at an interest rate of 10%. Interest and principle are due in one year. May 12. Karen received $7,000 from Wagner Enterprises, a client, for design work to be completed in July. May 17. Karen completed $12,000 design work for Sir William Industries on account. Payment is due in 30 days. May 20. Karen completed $3,000 design work for DunnRite Scholastic Programs on account. Payment is due in 30 days