Assessing Financial Statement Effects of TransactionsDeFond Services, a firm providing art services for advertisers, began business on June 1. The following accounts 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 Wages Expense. Record the following transactions for June using the financial statement effects template. (Record each transaction in the order it appears.)June1M. DeFond invested $12,000 cash to begin the business in exchange for common stock. 2Paid $950 cash for June rent.Hint: Record rent expense on June 2. 3Purchased $6,400 of office equipment on credit. 6Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days. 11Billed clients $4,700 for services rendered. 17Collected $3,250 cash from clients on their accounts billed on June 11. 19Paid $3,000 cash toward the account for office equipment (see June 3). 25Paid $900 cash for dividends. 30Paid $350 cash for June utilities. 30Paid $2,500 cash for June wages.

Journal entry means the entry in prime book with chronological order. Journal entry should have…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assessing Financial Statement Effects of Transactions
DeFond Services, a firm providing art services for advertisers, began business on June 1. The following accounts 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 Wages Expense. Record the following transactions for June using the financial statement effects template. (Record each transaction in the order it appears.)

June	1	M. DeFond invested $12,000 cash to begin the business in exchange for common stock.
	2	Paid $950 cash for June rent.Hint: Record rent expense on June 2.
	3	Purchased $6,400 of office equipment on credit.
	6	Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days.
	11	Billed clients $4,700 for services rendered.
	17	Collected $3,250 cash from clients on their accounts billed on June 11.
	19	Paid $3,000 cash toward the account for office equipment (see June 3).
	25	Paid $900 cash for dividends.
	30	Paid $350 cash for June utilities.
	30	Paid $2,500 cash for June wages.