On July 31, 2021, Lee Meche, MD, had the following balances in the ledger for his medical practice: Cash $8,800, Accounts Receivable $2,750, Supplies $585, Equipment $15,550, Notes Payable $10,000, Accounts Payable $850, L. Meche, Capital $15,000, L. Meche, Drawings $5,125, Service Revenue $10,410, Rent Expense $1,200, and Salaries Expense $2,250. Transactions during August 2021 follow:

Instructions

a. Create T accounts and enter the July 31 balances.

b. Post the transactions to the T accounts. Create new T accounts if needed.

c. Prepare a trial balance at August 31.

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General Journal Date Account titles Ref Debit Credit 2021 Rent Expense Cash Aug. 1 1,200 1,200 Accounts Payable Cash 10 420 420 12 Cash 2,400 Accounts Receivable 2,400 25 Salaries Expense 2,250 Cash 2,250 30 Notes Payable 500 Interest Expense 40 Cash 540 31 Cash 5,910 Accounts Receivable 2,550 Service Revenue 8,460 31 L. Meche, Drawings 4,770 Cash 4,770