Lynn Barry started her own consulting firm, Barry Consulting, on June 1, 2021.

The following transactions occurred during the month of June:

June 1 Sold her shares in Big Country Airlines for $7,000, which she deposited in her personal bank account.

1 Transferred $6,000 from her personal account to a business account in the name of Barry Consulting.

Instructions

a. Prepare a tabular analysis of the effects of the above transactions on the accounting equation.

b. Calculate profit and owner?s equity for the month ended June 30.

c. Prepare a balance sheet at June 30.

Taking It Further

How should Lynn determine which transactions should be recorded and which ones should not be recorded?

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June Paid $900 for office rent for the month. Purchased $545 of supplies on account. Paid $95 to advertise in the County News. Received $3,275 for services provided. Withdrew $600 for personal use. Performed $5,000 of services on account. Paid $1,800 for employee salaries. Received $3,000 for services provided on account on June 15. Paid for the supplies purchased on account on June 3. Signed a contract to provide consulting services to a client for $5,500. Services will be performed and paid for in July. Borrowed $5,500 from the bank and signed a note payable. 12 15 17 21 22 25 26 Used part of the cash borrowed from the bank on June 26 to purchase equipment for $2,150. Paid $150 for telephone service for the month. Received $2,500 from client for consulting to be provided in July. 29 30 30