On June 1, Maui Travel Agency, Inc., was established. The following transactions were completed during the month.
1. Stockholders invested $40,000 cash, receiving common stock in exchange
2. Paid $1,000 cash for June office rent.
3. Purchased office equipment for $5,000 cash.
4. Paid $1,000 cash for office supplies.
5. Incurred $500 of advertising costs in the Daily Maui, on account.
6. Earned $25,000 for services rendered: Cash of $12,000 is received from customers, and the balance of $13,000 is billed to customers on account.
7. Paid $750 cash dividend.
8. Paid Daily Maui amount due in transaction (4).
9. Paid employees’ salaries $2,500.
10. Cash of $10,000 is received from customers who have previously been billed in transaction (6).