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. June 1 Lisa Ryan invested $13,000 cash to begin the business she received common stock for her investment. 2 Paid rent for June, $1,050. 3 Purchased office equipment an account, $6,500. 6 Purchased art materials and other supplies costing $3,900; paid $1,900 down with the remainder due within 30 days. 11 Billed clients for services, 56,800. 17 Collected $3,350 from clients on account. 19 Paid $3,100 on account to office equipment company (see June 3 transaction). 25 Lisa Ryan received a $2,100 dividend. 30 Paid utility bill for June, $450. 30 Paid salaries for June, 52,600. Accounting Equation Journal Entries a. Using the accounting equation, record each of the transactions in columnar format. Use negative signs with your answers, when appropriate. Cash + Accounts Receivable + Supplies + Office Equipment = Accounts Payable + Common Stock + Retained Earnings June 1$ $ 2 6 11 17 19 25 30 30 $ + S + S + $ b. Use journal entries to record the transactions for June in the general journal. Date Description Debit June $ 0 $ Credit 1 0 o o 0 Owner purchased common stock for cash. 2 0 0 0 0 Paid June rent. 3 0 o o 0 Purchased office equipment on account. 6 0 0 Cash 0 0 0 0 Purchased supplies; paid down payment with balance due in 30 days. 11 0 0 0 0 Billed clients for services. 17 0 0 0 0 Collections from clients on account. 19 - 0 o o 0 Payment on account. 25 0 0 0 0 Dividend paid to shareholders. 30 0 o o 0 Paid utilities bill for June. 30 0 0 0 0 Paid salaries for June