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prepare a trial balance as of 2010 august 31 624941

Economy Laundry Company had the following transactions in August 2010:

Aug. 1 Issued capital stock for cash, USD 150,000.

3 Borrowed USD 40,000 from the bank on a note.

4 Purchased cleaning equipment for USD 25,000 cash.

6 Performed services for customers who promised to pay later, USD 16,000.

7 Paid this month”s rent on a building, USD 2,800.

10 Collections were made for the services performed on August 6, USD 3,200.

14 Supplies were purchased on account for use this month, USD 3,000.

17 A bill for USD 400 was received for utilities for this month.

25 Laundry services were performed for customers who paid immediately, USD 22,000.

31 Paid employee salaries, USD 6,000.

31 Paid cash dividend, USD 2,000.

a. Prepare journal entries for these transactions.

b. Post the journal entries to T-accounts. Enter the account number in the Posting Reference column of the journal as you post each amount. Use the following account numbers:

No.

Acct.

Account Title

100

 

Cash

103

 

Accounts receivable

170

 

Equipment

200

 

Accounts payable

201

 

Notes payable

300

 

Capital stock

320

 

Dividends

400

 

Service revenue

507

 

Salaries expense

511

 

Utilities expense

515

 

Rent expense

518

 

Supplies expense

c. Prepare a trial balance as of 2010 August 31.

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