ACCT20 - Practice Exercise - Classwork Week 2 Serratore decides to open a cleaning and laundry service near the local college campus that will operate as a proprietorship. The transactions for the month of June are listed below: 1. Ken Serratore invests $20,000 in cash to start a cleaning and laundry business on June 1. 2. Purchased laundry equipment for $5,000 paying $3,000 in cash and the remainder due in 30 days. 3. Purchased laundry supplies for $1,200 cash. 4. Received a bill from Campus News for $300 for advertising in the campus newspaper. 5. 6. Cash revenue from customers for cleaning and laundry amounted to $1,500. Paid salaries of $200 to student workers. 7. Billed the Tiger Football Team $100 for cleaning and laundry services. 8. Paid $300 to Campus News for advertising that was previously billed in Transaction 4. 9. Ken Serratore, withdrew $700 from the business for living expenses. 10. Incurred utility expenses for month on account, $400. Instructions A) Analyze the transactions above in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Total and balance the equation at the end of the month. B) Prepare General Entries C) Prepare Ledger Accounts D) Prepare Trial Balance E) Prepare Income Statement FX Prepare Balance Sheet