On June 1 of the current year, Bret Eisen established a business to manage rental property. He completed the following transactions during June:
a. Opened a business bank account with a deposit of $30,000 in exchange for capital stock.
b. Purchased office supplies on account, $1,200.
c. Received cash from fees earned for managing rental property, $7,200.
d. Paid rent on office and equipment for the month, $3,000.
e. Paid creditors on account, $750.
f. Billed customers for fees earned for managing rental property, $5,000.
g. Paid automobile expenses (including rental charges) for month, $600, and miscellaneous expenses, $300.
h. Paid office salaries, $1,800.
i. Determined that the cost of supplies on hand was $700; therefore, the cost of supplies used was $500.
j. Paid dividends $1,500.

Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

2. Briefly explain why issuance of capital stock and revenues increased stockholders€™ equity, while dividends and expenses decreased stockholders€™ equity.
3. Determine the net income for June.
4. How much did June€™s transactions increase or decrease retainedearnings?

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Assets Accounts Liabilities Accounts Capital Payable + Stock-Dividends + Earned- Expense- Expense-Expense-Expense-Expense Stockholders' Equity Fees Rent Salaries Supplies Auto Misc. Cash + Receivable + Supplies