On June 1, 2019, a group of pilots in Melbourne, Australia, formed Outback Flights by issuing common stock for $50,000 cash. The group then leased several amphibious aircraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts in remote parts of Australia. The following transactions occurred during June 2019, and company accounts include the following: Cash, Accounts Receivable, Prepaid Insurance, Accounts Payable, Common Stock, Retained Earnings, Flight Services Revenue, Rent Expense, Entertainment Expense, Advertising Expense, Insurance Expense, Wages Expense, and Fuel Expense.

1. Issued common stock for $50,000 cash.

2. Paid $4,800 cash for June rent of aircraft, dockage, and dockside office.

3. Received $ 1,600 invoice for the cost of a reception to entertain resort owners in June.

4. Paid $900 cash for June advertising in various sport magazines.

5. Paid $1,800 cash for insurance premium for July.

6. Rendered flight services for various groups for $22,700 cash.

7. Billed client $2,900 for transporting personnel, and billed various firms for $13,000 in flight services.

8. Paid $1,500 cash to cover accounts payable.

9. Received $13,200 on account from clients in transaction 7.

10. Paid $16,000 cash to cover June wages.

11. Received $3,500 invoice for the cost of fuel used during June.

12. Declared and paid a $3,000 cash dividend.

REQUIRED:

a. Report the effects for each of the separate transactions 1 through 12 using the financial statement effects template. Total all columns and prove that (1) assets equal liabilities plus equity at June 30, 2019, and (2) revenues less expenses equal net income for June.

b. Prepare an income statement for the month of June.