During the first month of operations, Double R Heating and Air Conditioning, Inc., completed the following transactions:

Required
Set up the following T-accounts: Cash, Accounts Receivable, Supplies, Equipment, Land, Accounts Payable, Common Stock, Dividends, Service Revenue, Salary Expense, and Utilities Expense.
1. Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as posting references. Label the ending balance of each account Bal., as shown in the chapter.
3. Prepare the trial balance of Double R Heating and Air Conditioning, Inc., at January 31 of the current year.
4. The manager asks you how much in total resources the business has to work with, how much it owes, and whether January was profitable (and by how much).

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Double R received $30,000 cash and issued common stock to the stockholders. 3 Purchased supplies, $1,000, and equipment, $2,600, on account 4 Performed service for a customer and received cash, $1,500 Jan. 2 7 Paid cash to acquire land, $22,000. 11 Performed service for a customer and billed the customer, $800. 16 17 We expect to collect within 1 month. Paid for the equipment purchased Ja nuary 3 on account. Paid the telephone bill, $100. 22 Paid the water and electricity bills, $400 Received $1,800 cash for servicing the heating unit of a customer 31 31 29 Paid employee salary, $1,300. Declared and paid dividends of $2,200.