Creative Designs, a firm providing art services for advertisers,began business on June 1. The following accounts in its generalledger 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 Salaries Expense. a. Using the accountingequation, record each of the transactions in columnar format. b.Use journal entries to record the following transactions for Junein the general journal. June 1 Lisa Ryan invested $22,000 cash tobegin the business; she received common stock for her investment. 2Paid rent for June, $1,950. 3 Purchased office equipment onaccount, $7,400. 6 Purchased art materials and other suppliescosting $4,800; paid $2,800 down with the remainder due within 30days. 11 Billed clients for services, $10,000. 17 Collected $4,250from clients on account. 19 Paid $4,000 on account to officeequipment company (see June 3 transaction). 25 Lisa Ryan received a$3,000 dividend. 30 Paid utility bill for June, $1,350. 30 Paidsalaries for June, $3,500.
