On July 31, 2018, the following alphabetically ordered list of accounts and amounts was available for B&B

Question:

On July 31, 2018, the following alphabetically ordered list of accounts and amounts was available for B&B Repair Services Ltd.

During August, the following summary transactions were completed:
Aug. 1Paid $250 for advertising on Kijiji for the current month.
2 Provided $1,260 of services related to cash received in advance last month for services to be performed this month.
3 Paid August rent, $980.
6 Received $1,200 cash from customers in payment of accounts.
7 Signed a contract with Merrithew's Appliances Ltd. to provide future repair services for its customers as required.
10 Paid $3,120 for salaries due employees, of which $1,700 was for August and $1,420 for July salaries payable.
13 Received $2,800 cash for services performed to date in August.
15 Purchased new equipment for $2,000, which was financed with a bank loan.
20 Paid creditors $2,000 of accounts due.
22 Purchased supplies on account for $800.
24 Paid $2,900 for employees' salaries.
27 Billed customers $3,760 for services performed.
29 Received $780 from customers for services to be performed in the future.
30 Paid $500 on the bank loan, in addition to interest of $50.
31 Paid income tax of $380.
31 Declared and paid $400 of dividends to shareholders.
Instructions
(a) Journalize the August transactions.
(b) Set up T accounts, enter the opening balances in the general ledger at July 31, and post the journal entries to the general ledger.
(c) Prepare a trial balance at August 31.
(d) Prepare an income statement, statement of changes in equity, and statement of financial position for August.
(e) Review the Cash account in the general ledger. Classify each August transaction as either an operating activity, investing activity, or financing activity.