1. Assessing Financial Statement Effects of Transactions K. Daniels started Daniels Services, a firm providing art services for advertisers, 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 Eamed, Rent Expense, Utilities Expense, and Wages Expense. Record the following transactions for June using the financial statement effects template.
June 1 K. Daniels invested $12,000 cash to begin the business in exchange for common stock.
2 Paid $950 cash for June rent.
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.
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.
2. Preparing Journal Entries and Posting Refer to the information in M3-12. Prepare a journal entry for each transaction. Create a T-account for each account, and then post the journal entries to the T-accounts (use dates to reference each entry).
3. Assessing Financial Statement Effects of Transactions
B. Fischer started Fischer Company, a cleaning services firm, on April 1. The company created the following accounts to record the transactions for April: Cash; Accounts Receivable; Supplies; Prepaid Van Lease; Equipment; Notes Payable; Accounts Payable; Common Stock; Dividends; Cleaning Fees Earned; Wages Expense; Advertising Expense; and Van Fuel Expense. Record the following transactions for April using the financial statement effects template.