Mr$.$ Corona decides to open a cleaning and laundry service near the local college campus that will

operate as a sole proprietorship. 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 owner's equity.

Transactions

$(1)$ Mr$.$ Corona invests $$25,000$ in cash to start a cleaning and laundry business on June $1.$

$(2)$ Purchased equipment for $$5,000$ paying $$3,500$ in cash and the remainder due in $30$ days.

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

$(4)$ Received a bill from College for $$200$ for advertising in the campus newspaper.

$(5)$ Cash receipts from customers for cleaning and laundry amounted to $$2,600.$

$(6)$ Paid salaries of $$600$ to student workers.

$(7)$ Billed the Tiger Tennis Team $$480$ for cleaning and laundry services.

$(8)$ Paid $$200$ to College for advertising that was previously billed in Transaction $4.$

$(9)$ Mr$.$ Corona withdrew $$1,300$ from the business for living expenses.

$(10)$ Incurred utility expenses for month on account, $$500.$

Trans$-$ Accounts Accounts Owner$$s

action Cash $+$ Receivable $+$ Supplies $+$ Equipment $=$ Payable $+$ Capital