3. Prepare a trial balance on a ten-column work sheet. Date Transaction Aug. 01 Issued 60,000 shares of $10 par value common stock in exchange for an initial investment of $600,000 by the owners. Aug. 01 Prepaid $1,680 for a one-year insurance policy Aug. 03 Issued 2,000 shares of $10 par value common stock for office equipment with a fair market value of $20,000. . Aug. 04 Borrowed $40,000 by issuing a five-year, 6% note payable. The note called for a $8,000 annual installment payment plus interest. Record the short-term and long-term portions of the note payable in two separate accounts. Aug. 05 Purchased Land and a Building for $114,000 cash. The Building had a fair market value of $84,000 and the Land had a fair market value of $30,000. Aug. 06 Purchased $12,000 worth of Office Supplies on account from Kilcoyne Office Supply. Aug. 07 Established a petty cash fund of $300. Aug. 08 Paid $1,800 cash for an order with a local newspaper for advertising that begins on August 15 and will run for three months. The advertising was paid for on this date to obtain a lower price. Aug. 11 Completed services for several clients and received $15,500. Aug. 12 Completed services for customers and billed them for $12,400. Aug. 15 Paid the semi-monthly payroll of $8,000 to the firm's part time consultants, all of which are classified as independent contractors. Aug. 16 Received $4,800 in advance for services to be provided from August 16 through February 15. (Three months) Aug. 16 A client billed on August 12 indicated that a $4,320 receivable due Bayou Computer Services Enterprises would not be paid for 90 days. Bayou Computer Services accepted a 10% 90-day note on this date. Aug. 17 Declared a cash dividend of $0.10 per share on this date Payable on December 16. Aug. 18 Paid $3,000 cash to Kilcoyne Office Supply on the August 06 account balance. Aug. 29 Received and paid the August telephone bill of $325. Aug. 31 Collected $5,000 of the receivable recorded on August 12. Aug. 31 Paid $725 cash for various utility bills received for August. Aug. 31 Recorded services rendered to clients during the last half of August that totaled $22,000. The firm collected $14,000 in cash with the balance due in 30 days. Aug. 31 Record the entry to replenish the petty cash fund. An audit of the petty cash fund determined the following: Petty Cash Tickets: Postage $ 60 Freight-Out 75 Repair Expense 40 Miscellaneous Expense 105 Currency and Coins in Petty Cash $25