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 $5,000 cash toward the account for office equipment (see June 3). 25 Paid $900 cash for dividends. June 30 Paid $350 cash for June utilities. 30 Paid $2,500 cash for June wages. Transaction 1 2 3 6 11 17 19 25 30 30 Cash Asset + Noncash Assets Balance Sheet - Liabilities + Contributed Capital Earned Capital Income Statement Expenses - Net Income Revenue Expenses
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 $5,000 cash toward the account for office equipment (see June 3). 25 Paid $900 cash for dividends. June 30 Paid $350 cash for June utilities. 30 Paid $2,500 cash for June wages. Transaction 1 2 3 6 11 17 19 25 30 30 Cash Asset + Noncash Assets Balance Sheet - Liabilities + Contributed Capital Earned Capital Income Statement Expenses - Net Income Revenue Expenses
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $5,000 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.
Transaction
June
1
2
3
6
11
17
19
25
30
30
Cash
Asset
+
Noncash
Assets
Balance Sheet
Contributed
Liabilities + Capital +
Earned
Capital
Revenue
Income Statement
Expenses = Net Income
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