Economy Laundry Company had the following transactions in August 1999: lo1 Aug. 1 Issued capital stock for cash . $ 1 50,000. 3 Borrowed $40,000 from the bank on a note.
4 Purchased cleaning equipment for $25,000 cash.
6 Performed services for customers who promised to pay later, $16,000.
7 Paid this month's rent on a building, $2,800. 10 Collections were made for the services performed on August 6, $3,200.
14 Supplies were purchased on account for use this month, $3,000. 17 A bill for $400 was received for utilities for this month.
25 Laundry services were performed for customers who paid immediately, $22,000. 3 1 Paid employee salaries, $6,000. 3 1 Paid cash dividend , $2,000.
Required a.

b. Prepare journal entries for these transactions.
Post the journal entries to T-accounts. Enter the account number in the Posting Reference column of the journal as you post each amount. Use the following account numbers:

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Acct. No. Account Title 100 Cash 103 Accounts Receivable 170 Equipment 200 Accounts Payable 201 Notes Payable 300 Capital Stock 320 Dividends 400 Service Revenue 507 Salaries Expense 511 Utilities Expense 515 Rent Expense Supplies Expense 518 Prepare a trial balance as of August 31, 1999.