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Friday Line, a modeling agency, completed the following transactions during the first month of operations:

April 1: Stockholders invested $65,000 cash along with equipment valued at $32,000 in the company in exchange for 1,000 shares of stock.

April 3: Friday Line paid $9,500 cash to settle accounts payable.

April 6: Friday Line completed services for a client and immediately received $2,500 cash.

April 9: Friday Line completed a $7,500 project for a client who must pay within 30 days.

April 12: Friday Line made credit purchases of $9,200 for office equipment and $4,100 for office supplies. Payment is due within 10 days.

April 19: Friday Line paid $3,200 cash for the premium on a 12-month insurance policy.

April 21: Friday Line pre-paid $12,000 for 12 months rent for their office space.

April 22: Friday Line received $6,000 cash as a partial payment for the work completed on April 9.

April 25: Friday Line purchased $725 of additional office supplies on credit.

April 26: Friday Line completed work for another client for $3,125 on credit.

April 27: Friday Line paid a dividend of $6,500 cash to its stockholders.

April 30: Friday Line paid $525 cash for this months utility bill.

Instructions:

Prepare journals for the above economic transactions and include the effect that each transaction has on the accounting equation. Use the following assignment template for Friday Line Co.

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