Question

Journalizing Transactions in Template, Journal Entry Form, and T-Accounts
Creative Designs, a firm providing art services for advertisers, began business on June 1,2015. The following transactions occurred during the month of June.

a. Record the below transactions for June using the financial statement effects template.

				Balance Sheet										Income Statement
				Cash		Noncash				Contrib.		Earned						Net
Transaction				Assets	+	Assets	=	Liabilities	+	Capital	+	Capital		Revenues	-	Expenses	=	Income
June 1 Anne Clem invested $18,000 cash to begin the business in exchange for common stock.
June 2 Paid $1,425 cash for June rent.
June 3 Purchased $9,600 of office equipment on account.
June 6 Purchased $5,700 of art materials and other supplies; paid $2,700 cash with the remainder due within 30 days.
June 11 Billed clients $7,050 for services rendered.
June 17 Collected $4,875 cash from clients on their accounts.
June 19 Paid $4,500 cash toward the account for office equipment suppliers (see June 3)
June 25 Paid $1,350 cash for dividends.
June 30 Paid $525 cash for June utilities.
June 30 Paid $3,750 cash for June salaries.

b. Record the transactions for June in journal entry form.

June 1 Anne Clem invested $18,000 cash to begin the business in exchange for common stock.

General Journal
Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 2 Paid $1,425 cash for June rent.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 3 Purchased $9,600 of office equipment on account.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 6 Purchased $5,700 of art materials and other supplies; paid $2,700 cash with the remainder due within 30 days.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
Cash
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 11 Billed clients $7,050 for services rendered.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 17 Collected $4,875 cash from clients on their accounts.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 19 Paid $4,500 cash toward the account for office equipment suppliers (see June 3).

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 25 Paid $1,350 cash for dividends.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 30 Paid $525 cash for June utilities.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

June 30 Paid $3,750 cash for June salaries.

Description	Debit	Credit
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense
CashCommon stockRent expenseOffice equipmentAccounts payableSuppliesAccounts receivableRetained earningsService fees earnedUtilities expenseSalaries expense

c. Post the transactions to the appropriate T-accounts. (For each T-account, enter answers in the in the first available space debit or credit space, as appropriate.)
June 1 Anne Clem invested $18,000 cash to begin the business in exchange for common stock.
June 2 Paid $1,425 cash for June rent.  
June 3 Purchased $9,600 of office equipment on account.  
June 6 Purchased $5,700 of art materials and other supplies; paid $2,700 cash with the remainder due within 30 days.  
June 11 Billed clients $7,050 for services rendered.  
June 17 Collected $4,875 cash from clients on their accounts.  
June 19 Paid $4,500 cash toward the account for office equipment suppliers (see June 3).
June 25 Paid $1,350 cash for dividends.  
June 30 Paid $525 cash for June utilities.  
June 30 Paid $3,750 cash for June salaries.

Cash
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Office equipment
	Answer	Answer

Accounts payable
	Answer	Answer
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Retained Earnings
	Answer	Answer

Rent Expense
	Answer	Answer

Accounts Receivable
	Answer	Answer

Supplies
	Answer	Answer

Common Stock
	Answer	Answer

Service Fees Earned
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Utilities Expense
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Salaries Expense
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Answer 1