Question

PLEASE HELP WITH ACOUNTING EQUATION AND JOURNAL ENTRIES

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 $21,000 cash to begin the business she received common stock for her investment 2 Paid rent for June, $1,850. 3 Purchased office equipment on account, $7,300. 6 Purchased art materials and other supplies costing $4,700: paid $2,700 down with the remainder due within 30 days 11 Biled cierts for services, $9,800. 17 Collected S4150 from cients on account. 19 Paid $3,900 on account to office equipment company (see june 3 transaction). 25 Lisa Ryan received a $2,900 dividend. 30 Paid utility bill for june, $1,250. 30 Paid salaries for june, $3,400 Accounting Equation Journal Entries

Answer 1

Accounting Equation:

Cash

+

Accounts Receivable

+

Supplies

+

Office equipment

=

Accounts payable

+

Common stock

+

Retained earnings

1

$21,000

+

+

+

=

+

$21,000

+

2

($1,850)

+

+

+

=

+

+

($1,850)

3

+

+

+

$7,300

=

$7,300

+

+

6

($2,700)

+

+

$4,700

+

=

$2,000

+

+

11

+

$9,800

+

+

=

+

+

$9,800

17

$4,150

+

($4,150)

+

+

=

+

+

19

($3,900)

+

+

+

=

($3,900)

+

+

25

($2,900)

+

+

+

=

+

+

($2,900)

30

($1,250)

+

+

+

=

+

+

($1,250)

30

($3,400)

+

+

+

=

+

+

($3,400)

$9,150

+

$5,650

+

$4,700

+

$7,300

=

$5,400

+

$21,000

+

$400

Journal Entries:

General Journal
Date	Description	Debit	Credit
June 1	Cash	$21,000
	Common stock		$21,000
	[Owner purchased common stock for cash]
June 2	Rent expense	$1,850
	Cash		$1,850
	[paid June rent]
June 3	Office equipment	$7,300
	Accounts payable		$7,300
	[Purchased office equipment on account]
June 6	Supplies	$4,700
	Cash		$2,700
	Accounts payable		$2,000
	[Purchased supplies; paid down payment with balance due in 30 days.]
June 11	Accounts receivable	$9,800
	Service revenue		$9,800
	[Billed clients for services]
June 17	Cash	$4,150
	Accounts receivable		$4,150
	[Collections from clients on account
June 19	Accounts payable	$3,900
	Cash		$3,900
	[Payment on account]
June 25	Cash dividends	$2,900
	Cash		$2,900
	[Dividends paid to shareholders]
June 30	Utilities expense	$1,250
	Cash		$1,250
	[Paid utilities bill for June]
June 30	Salaries expense	$3,400
	Cash		$3,400
	[Paid salaries for June]