P2-62. Analyzing Transactions Using the Financial Statement Effects Template and Preparing an Income Statement (ESET) On June 1, a group of pilots in Melbourne, Australia, formed Outback Flights by issuing common stock for $25,000 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, 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 $25,000 cash. 2. Paid $2,400 cash for June rent of aircraft, dockage, and dockside office. The leases are all for less than 12 months-the company is evaluating the business model before they purchase. 3. Received $800 invoice for the cost of a reception to entertain resort owners in June. 4. Paid $450 cash for June advertising in various sport magazines. 5. Paid $900 cash for insurance premium for July. 6. Rendered flight services for various groups for $11,350 cash. 7. Billed client $1,450 for transporting personnel, and billed various firms for $6,500