On June 1, Maui Travel Agency, Inc., was established. The following transactions were completed…


Question Description:

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On June 1, Maui Travel Agency, Inc., was established. The following transactions were completed during the month. 1. Stockholders invested $40,000 cash, receiving common stock in exchange 2. Paid $1,000 cash for June office rent. 3. Purchased office equipment for $5,000 cash. 4. Paid $1,000 cash for office supplies. 5. Incurred $500 of advertising costs in the Daily Maui, on account. 6. Earned $25,000 for services rendered: Cash of $12,000 is received from customers, and the balance of $13,000 is billed to customers on account. 7. Paid $750 cash dividend. 8. Paid Daily Maui amount due in transaction (4). 9. Paid employees’ salaries $2,500. 10. Cash of $10,000 is received from customers who have previously been billed in transaction (6).

Answer

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