M3-12.

(20 minutes)
Income Statement

Balance Sheet
Transaction
Cash
CS
12,000

Cash
Asset

Noncash
=
Assets

LiabilContrib.
Earned
+
+
ities
Capital
Capital

Revenues

ExpenNet
=
ses
Income

+950
Rent =
Expense

+6,400
+6,400
Office
= Accounts
Equipment
Payable

+2,000
= Accounts
Payable

+4,700
Service
Fees

Earned
((Revenue)

12,000

June 1. Invested +12,000

$12,000 cash
Cash

June 2. Paid
$950 cash for
June rent

+12,000
Commo
n
Stock

RNTE
950
Cash
950

PPE
AP
6,400

-950
Cash

-950
Retained
Earnings

-950

6,400
June 3.
Purchased
$6,400 of office
equipment on
credit

SUP
3,800
Cash
1,800
AP
2,000
June 6.
Purchased
$3,800 of
-1,800
supplies; $1,800 Cash
cash, $2,000 on
account

AR

+3,800
Supplies

4,700

Rev
4,700
June 11. $4,700
billed for
services

+4,700
Accounts =
Receivable

+4,700
Retained
Earnings

+4,700

Continued next page

M3-12. concluded
Income Statement

Balance Sheet
Transaction
Cash
AR

Cash
Noncash
+
=
Asset
Assets

Liabilities

Contrib.
+
Capital

Earned
Capital

Revenues

ExpenNet
=
ses
Income

3,250
3,250
June 17.
+3,250
Collect $3,250
Cash
on accounts

-3,250
Accounts =
Receivable

AP

5,000
Cash
5,000

DIV
Cash

UTE
Cash

June 19. Paid

$5,000 on
-5,000
office
Cash
equipment
account

-5,000
= Accounts
Payable

June 25. Paid

cash dividend
of $900

-900
Cash

-900
Dividends
)

June 30. Paid

$350 utilities

-350
Cash

-350
Retained
Earnings

+350
Utilities =
Expense

-350

-2,500
Cash

-2,500
Retained
Earnings

+2,500
Wages =
Expense

-2,500

900
900

350
350

WE
2,500
Cash
2,500
June 30. Paid
$2,500 wages