Question 4

b) Ahmad 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.

No.	Transaction
1.	Issued ordinary shares in exchange for $15,000 cash on June 1.
2.	Purchased laundry equipment for $4,000 paying $3,000 in cash and the remainder due in 30 days.
3.	Purchased laundry supplies for $1,600 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.