Lyons. Inc., provides consulting services. A few of the company's business transaction...

Lyons. Inc., provides consulting services. A few of the company's business transaction occurring during June are described below:

1. On June 1, the company billed customers $5,000 on account for consulting services rendered. Customers are required to make full payment within 30 days.

2. On June 3, the company purchased office supplies costing $3,200,paying $800 cash and charging the remainder on the company's 30-day account at Office Warehouse. The supplies  are expected to last several months.

3. On June 5, the company returned to Office Warehouse $100 of supplies that were not   needed. The return of these supplies reduced by $100 the amount owed to office Warehouse.

4. On June 17, the company issued an additional 1.000 shares of capital stock at $5 per share. The cash raised will be used to purchase new equipment in September.

5. On June 22, the company received $1,200 cash from customers it had billed on June 1.

6. On June 29, the company paid its outstanding account payable to office Warehouse.

7. On June 30. a cash dividend totaling $1,800 was declared and r> company’s  stockholders.

Instructions

a. Prepare an analysis of each of the above transactions. Transaction 1 example of the form of analysis to be used.

1. (a) The asset Accounts Receivable was increased. Increases in  assets are recorded by debits. Debit Accounts Receivable $5,000.

(b) Revenue has been earned. Revenue increases owners' equity .Increased in owners’ equity are recorded by credits. Credit Consulting Revenue $5,000.

b. Prepare journal entries, including explanations, for the above transaction.

c. How does the realization principle influence the manner in which the June 1 billings  to customers is recorded in the accounting records?

d. How does the matching principle influence the manner in which the June 3 purchase of supplies is recorded in the accounting records?