During the first month of operations, Gagne Services, Inc., completed the following transactions:
Jul... 2.... Gagne received $62,000 cash and issued common stock to the stockholders.
3..... Purchased supplies, $800, and equipment, $12,100, on account.
4..... Performed services for a customer and received cash, $5,600.
7..... Paid cash to acquire land, $39,000.
11.... Performed services for a customer and billed the customer, $2,900. Gagne expects to collect within one month.
16.... Paid for the equipment purchased July 3 on account.
17.... Received and paid the telephone bill, $590.
18.... Received partial payment from customer on account, $800.
22..... Received and paid the water and electricity bills, $420.
29..... Received $2,300 cash for servicing the heating unit of a customer.
30..... Paid employee salaries, $2,500.
30..... Declared and paid dividends of $2,000.
Requirements
1. Record each transaction in the journal. Be sure to record the date in each entry. Explanations are not required.
2. Post the transactions to the T-accounts, using transaction dates as posting references.
3. Prepare the trial balance of Gagne Services, Inc., at July 31 of the current year.
4. John Gagne, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether July was profitable (and by how much).