Question

LO2 M3-21. Journalizing Transactions in Template, Journal Entry Form, and T-Accounts Creative Designs, a firm providing art services for advertisers, began business on June 1,2015. The following transactions occurred during the month of Junc. June Anne Clem invested $12,000 cash to begin the business in exchange for common stock 2 Paid $950 cash for June rent. Chapter 3 Adjusting Accounts for Financial Statements131 Purchased $6,400 of office equipment on account 6 Purchased S3,800 of art materials and other supplies; paid $1,800 cash with the remainder June 3 due within 30 days. 11 Billed clients $4,700 for services rendered. 17 Collected $3,250 cash from clients on their accounts 19 Paid S3,000 cash toward the account for office equipment suppliers (see June 3). 25 Paid S900 cash for dividends. 30 Paid $350 cash for June utilities 30 Paid S2,500 cash for Junc salaries REQUIRED a. Record the above transactions for June using the financial statement effects template b. The following accounts in its gen eral ledger are needed to record the transactions for June Cash; Accounts Receivable; Supplies; Office Equipment: Accounts Payable; Common Stock Retained Earnings; Service Fees Eaed; Rent Expense Utlities Expense; and Salaries Expense. Record the above transactions for Junc in journal entry form c. Set up T-accounts for each of the ledger accounts and post the entries to them (key the num bers in T-accounts by date)

Answer 1

	Creative Designs
	Journal Entries
Date	Particular	Amount (Dr)	Amount (Cr)
1-Jun	Cash	$         12,000.00
	To Common Stock		$                                          12,000.00
	(Being amount invested in business)
2-Jun	Rent	$               950.00
	To Cash		$                                                950.00
	(Being amount of rent paid in cash)
3-Jun	Office Equipment	$           6,400.00
	To Accounts Payable		$                                            6,400.00
	(Being amount of purchased of office equipment on account)
6-Jun	Art Material & Other Supplies	$           3,800.00
	To Cash		$                                            1,800.00
	To Accounts Payable		$                                            2,000.00
	(Being amount of purchased of Art Material & other Supplies)
11-Jun	Accounts Receivable	$           4,700.00
	To Service Revenue		$                                            4,700.00
	(Being amount of billed to customer for service rendered)
17-Jun	Cash	$           3,250.00
	To Accounts Receivable		$                                            3,250.00
	(Being amount of cash collected from customers)
19-Jun	Accounts Payable	$           3,000.00
	To Cash		$                                            3,000.00
	(Being amount paid to towards the account for office equipment supplies)
25-Jun	Dividend	$               900.00
	To Cash		$                                                900.00
	(Being amount of dividend paid in cash)
30-Jun	Utilities Expenses	$               350.00
	To Cash		$                                                350.00
	(Being amount of Utilites expenses paid in cash)
30-Jun	Salaries Expenses	$           2,500.00
	To Cash		$                                            2,500.00
	(Being amount of Salaries expenses paid in cash)
	T-Accounts
	Cash A/c
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
1-Jun	Common Stock	$         12,000.00		$             12,000.00
2-Jun	Rent		$                                                950.00	$             11,050.00
6-Jun	Art Material & Other Supplies		$                                            1,800.00	$                9,250.00
17-Jun	Accounts Receivable	$           3,250.00		$             12,500.00
19-Jun	Accounts Payable		$                                            3,000.00	$                9,500.00
25-Jun	Dividend		$                                                900.00	$                8,600.00
30-Jun	Utilties Expenses		$                                                350.00	$                8,250.00
30-Jun	Salaries		$                                            2,500.00	$                5,750.00
	Accounts Receivable
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
11-Jun	Service Revenue	$           4,700.00		$                4,700.00
17-Jun	Cash		$                                            3,250.00	$                1,450.00
	Art Material & Other Supplies
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
6-Jun	Accounts Payable	$           3,800.00		$                3,800.00
	Accounts Payable
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
3-Jun	Office Equipment		$                                            6,400.00	$                6,400.00
6-Jun	Art Material & Other Supplies		$                                            2,000.00	8,400.00
19-Jun	Cash	$           3,000.00		5,400.00
	Rent
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
2-Jun	Cash	$               950.00		$                   950.00
	Service Revenue
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
11-Jun	Accounts Receivable		$                                            4,700.00	$                4,700.00
	Common Stock
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
1-Jun	Cash		$                                          12,000.00	$             12,000.00
	Dividend
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
25-Jun	Cash	$               900.00		$                   900.00
	Utilities Expense
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
30-Jun	Cash	$               350.00		$                   350.00
	Salaries Expense
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
30-Jun	Cash	$           2,500.00		$                2,500.00
	Office Equipment
Date	Particular	Amt (Dr)	Amt (Cr)	Balance
3-Jun	Accounts Payable	$           6,400.00		$                6,400.00