Suarez Digital Services created its chart of accounts as follows: You will use this chart of accounts

Question:

Suarez Digital Services created its chart of accounts as follows:

You will use this chart of accounts to complete the Continuing Problem.

The following problem continues from Chapter 1.

Assignment
1. Set up T accounts in a ledger and post the ending balances from the expanded accounting equation in Chapter 1.
2. Record Transactions K through S in the appropriate T accounts.
3. Foot and take the balances of the T accounts where appropriate.
4. Prepare a trial balance at the end of August.
5. From the trial balance, prepare an income statement, statement of owner’s equity, and a balance sheet for the 2 months ending with August 31, 202X.

K. Received the phone bill for the month of July, $200.
L. Paid $300 (check #8099) for insurance for the month.
M. Paid $50 (check #8100) of the amount due from Transaction D in Chapter 1.
N. Paid advertising expense for the month, $500 (check #8101).
O. Billed a client (Kristen Tarsia) for services rendered, $1,100.
P. Collected $1,400 for services rendered. (Assume cash collection occurred at the same time services were rendered.)
Q. Paid the electric bill in full for the month of July (check #8102, Transaction H, Chapter 1).
R. Paid cash (check #8103) for $20 in stamps.
S. Purchased $500 worth of supplies from The Computer Store on credit.