Modern Services was formed on June 1, 2019. The following transactions took place during the first month.

Transactions on June 1:

1. YOU invested $ 210,686 cash in the company, as sole owner.

2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,355 per month.

3. Signed a 2-year rental agreement on an office; paid $26,400 cash in advance for the first year.

4. Purchased furniture and equipment costing $33,000. A cash payment of $10,000 was made immediately; for the remainder signed a12% note.

5. Paid $1,980 cash for a one-year Rent contract.

6. Purchased basic office supplies for $550 cash.

7. Purchased more office supplies for $1,650 on account.

8. Total revenues earned were $22,000 - $8,000 cash and $14,000 on account.

9. Paid $ 686 to suppliers for accounts payable due.

10. Received $3,300 from customers in payment of accounts receivable.

11. Received utility bills in the amount of $385, to be paid next month.

12. Paid the monthly salaries of the two employees, totaling $6,710.

Instructions:

(a) Prepare journal entries to record each of the events listed.

(b) Post the journal entries to T-accounts.

(c) Prepare a trial balance as of June 30, 2019.

(d) Determine amount of net income or loss for June.