Creative Designs, a firm providing art services for advertisers, began business on June 1. The following accounts in its general ledger 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 accounting equation, record each of the transactions in columnar format.

b. Use journal entries to record the following transactions for June in the general journal.

June 1 Lisa Ryan invested $8,000 cash to begin the business; she received common stock for her investment.
2 Paid rent for June, $450.
3 Purchased office equipment on account, $3,500.
6 Purchased art materials and other supplies costing $2,500; paid $900 down with the remainder due within 30 days.
11 Billed clients for services, $4,750.
17 Collected $2,100 from clients on account.
19 Paid $2,000 on account to office equipment company (see June 3 transaction).
25 Lisa Ryan received a $750 dividend.
30 Paid utility bill for June, $450.
30 Paid salaries for June, $2,750.