Below are the transactions for Racer, Inc. for April, the first month of operations.

April 1Obtain a loan of $50,000 from the bank.

April 2Issue common stock in exchange for cash of $20,000.

April 7Purchase equipment for $40,000 cash.

April 10 Purchase cleaning supplies of $4,000 on account.

April 12 Provide services of $5,000 for cash.

April 16 Pay employees $1,200 for work performed.

April 19 Pay for advertising in a local newspaper, costing $500.

April 23 Provide services of $7,000 on account.

April 29 Pay employees $1,500 for work performed.

April 30 A utility bill of $1,200 for the current month is paid.

April 30 Pay dividends of $700 to stockholders.

Required:

1. Record each transaction.

2. Post each transaction to the appropriate T-accounts.

3. Calculate the balance of each account.

4. Prepare a trial balance for June.

Racer uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Notes Payable, Common Stock, Dividends, Service Revenue, Salaries Expense, Advertising Expense, and Utilities Expense.