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Transaction Entries Creative Designs, a firm providing art services for advertisers, began business on June 1. The following accounts in its general ledger are needed

Transaction Entries

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 $17,000 cash to begin the business; she received common stock for her investment.
2 Paid rent for June, $1,450.
3 Purchased office equipment on account, $6,900.
6 Purchased art materials and other supplies costing $4,300; paid $2,300 down with the remainder due within 30 days.
11 Billed clients for services, $8,200.
17 Collected $3,750 from clients on account.
19 Paid $3,500 on account to office equipment company (see June 3 transaction).
25 Lisa Ryan received a $2,500 dividend.
30 Paid utility bill for June, $850.
30

Paid salaries for June, $3,000.

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
Cash 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.

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