During December, Smith Auction Co. completed the following transactions:
Dec 1 Smith received $26,000 cash and issued common stock to the stockholders.
5 Paid monthly rent, $1,100.
9 Paid $8,500 cash and signed a $30,000 note payable to purchase land for an office site.
10 Purchased supplies on account, $1,700.
19 Paid $600 on account.
22 Borrowed $20,000 from the bank for business use. Smith signed a note payable to the bank in the name of the business.
31 Service revenue earned during the month included $12,000 cash and $8,000 on account.
31 Paid employees salaries ($2,400), advertising expense ($1,500), and utilities expense ($1,400).
31 Declared and paid a cash dividend of $6,500.
Smiths business uses the following accounts: Cash, Accounts Receivable, Supplies, Land,
Accounts Payable, Notes Payable, Common Stock, Dividends, Service Revenue, Salary Expense, Advertising Expense, and Utilities Expense.

Requirements
1. Journalize each transaction of Smith Auction Co. Explanations are not required.
2. Post to these T-accounts: Cash, Accounts Payable, and Notes Payable.
3. After these transactions, how much cash does the business have? How much in total liabilities does it owe?