See picture for question on practice exam ### Assessing Financial Statement Effects of Transactions**DeFond Services**, a firm providing art services for advertisers, began business 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 Earned**- **Rent Expense**- **Utilities Expense**- **Wages Expense**Record the following transactions for June using the financial statement effects template. (Record each transaction in the order it appears.)#### Transactions for June:1. **June 1:** M. DeFond invested $12,000 cash to begin the business in exchange for common stock.2. **June 2:** Paid $950 cash for June rent.3. **June 5:** Purchased $6,400 of office equipment on credit.4. **June 6:** Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days.5. **June 11:** Billed clients $4,700 for services rendered.6. **June 17:** Collected $3,250 cash from clients on their accounts billed on June 11.7. **June 20:** Paid $5,000 cash toward the account for office equipment (see June 3).8. **June 25:** Paid $900 cash for dividends.9. **June 26:** Paid $350 cash for June utilities.10. **June 30:** Paid $2,500 cash for June wages.### Graph ExplanationThe **Balance Sheet** and **Income Statement** diagram shown below the transactions is used to illustrate how each transaction impacts various financial statement elements. The template includes columns for:- **Transaction**: Chronological listing of transactions.- **Balance Sheet**: - **Cash** - **Noncash Assets** - **Liabilities** - **Contributed Capital** - **Earned Capital**- **Income Statement**: - **Revenue** - **Expenses** - **Net Income**Each transaction is categorized into one or more components of the financial statements, demonstrating the effect on both the balance sheet and the income statement. For example:- When M. DeFond invests $12,000 cash, it increases **Cash (Asset)** and **

Financial statements: Financial statements are condensed summary of transactions communicated in the…

Assessing Financial Statement Effects of Transactions DeFond Services, a firm providing art services for advertisers, began business 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 Earned; Rent Expense; Utilities Expense; and Wages Fxnense Record the follo transactions for Juneusing the financial

Assessing Financial Statement Effects of Transactions DeFond Services, a firm providing art services for advertisers, began business 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 Earned; Rent Expense; Utilities Expense; and Wages Fxnense Record the follo transactions for Juneusing the financial

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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