After researching the different forms of business organization, Natalie Koebel decides to operate Santé Smoothies as a proprietorship. She then starts the process of getting the business running. During the month of April 2017, the following activities take place:

Apr. 12 Natalie cashes her Canada Savings Bonds and receives $980, which she deposits in her personal bank account.

13 She opens a bank account under the name "Santé Smoothies" and transfers $900 from her personal account to the new account.

15 Natalie realizes that her initial cash investment is not enough. Her mother lends her $3,000 cash, for which Natalie signs a one-year, 3% note payable in the name of the business. Natalie deposits the money in the business bank account.

18 Natalie pays $325 to advertise in the April 20 issue of her community newspaper. Natalie hopes that this ad will generate revenue during the months of May and June.

20 She buys supplies, such as protein powder, cups, straws, and fresh fruit and vegetables, for $198 cash.

22 Natalie starts to investigate juicing machines for her business. She selects an excellent top-of-the-line juicer that costs $825. She pays for it using her own personal account.

23 Natalie prepares her first batch of smoothies to bring to the yoga studio. At the end of the first day, Natalie leaves an invoice for $300 with the studio owner. The owner says the invoice will be paid some time in May.

24 A $98 invoice is received for the use of Natalie's cell phone. The cell phone is used exclusively for the Santé Smoothies business. The invoice is for services provided in April and is due on April 30.

28 The yoga studio where Natalie sold her first smoothies orders smoothies for the next month. Natalie is thrilled! She receives $125 in advance as a down payment.

Instructions

(a) Prepare journal entries to record the transactions.

(b) Post the entries to T accounts.

(c) Prepare a trial balance as at April 30, 2017.