For the past several years, Dustin Larkin has operated a part-time consulting business from his home. As of June 1, 2010, Dustin decided to move to rented quarters and to operate the business, which was to be known as Quixote Consulting, on a full-time basis. Quixote Consulting entered into the following transactions during June: June 1. The following assets were received from Dustin Larkin: cash, $10,000; accounts receivable, $1,500; supplies, $1,250; and office equipment, $7,500. There were no liabilities received June1.
- Paid three months' rent on a lease rental contract, $4,500. June2.
- Paid the premiums on property and casualty insurance policies, $1,800 June 4.
- Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees,