Holly Nikolas launched a new business, Holly’s Maintenance Co., that began operations on...

Holly Nikolas launched a new business, Holly’s Maintenance Co., that began operations on June 1. The following transactions were completed by the company during that first month.

June 1 H. Nikolas invested $130,000 cash in the business.

2 Rented a furnished office and paid $6,000 cash for June’s rent.

4 Purchased $2,400 of equipment on credit.

6 Paid $1,150 cash for the next week’s advertising of the opening of the business.

8 Completed maintenance services for a customer and immediately collected $850 cash.

14 Completed $7,500 of maintenance services for City Center on credit.

16 Paid $800 cash for an assistant’s salary for the first half of the month.

20 Received $7,500 cash payment for services completed for City Center on June 14.

21 Completed $7,900 of maintenance services for Paula’s Beauty Shop on credit.

24 Completed $675 of maintenance services for Build-It Coop on credit.

25 Received $7,900 cash payment from Paula’s Beauty Shop for the work completed on June 21.

26 Made payment of $2,400 cash for the equipment purchased on June 4.

28 Paid $800 cash for an assistant’s salary for the second half of this month.

29 Nikolas withdrew $4,000 cash for personal use.

30 Paid $150 cash for this month’s telephone bill.

30 Paid $890 cash for this month’s utilities.

Required

1. Arrange the following asset, liability, and equity titles in a table like Exhibit 2.1: Cash; Accounts Receivable; Equipment; Accounts Payable; H. Nikolas, Capital; H. Nikolas, Withdrawals; Revenues; and Expenses.

2. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

3. Prepare a June income statement, a June statement of owner’s equity, and a June 30 balance sheet.