(answer choices for general journal)

Transaction Analysis and Trial Balance Ashley Somers owns San Diego Art Company, a firm providing designs for advertisers, market analysts, and others. On july 1, the business's general ledger showed the following normal account balances: $2,100 5,000 11,200 2,000 Cash $10,500 Accounts Payable Accounts Receivable 9,800 Notes Payable Common Stock Retained Earnings Total Liabilities and Stockholders Equity $20,300 $20,300 Total Assets The following transactions occurred during the month of july: 2 July 1 Paid july rent, $670. 2 Collected $8,100 on account from customers 3 Paid $2.500 installment due on the $5,000 noninterest-bearing note payable. 4 Billed customers for design services rendered on account, $19,550 5 Rendered design services and collected from cash customers, $1,200. 6 Paid $1,700 to creditors on account. 7 Collected $14,750 on account from customers. 8 Paid a delivery service for delivery of graphics to commercial firms, $400. 9 Paid July salaries, $4,600 10 Received invoice for July adverising expense, to be paid in August, s600. 7 Collected $14,750 on account from customers. 8 Paid a delivery service for delivery of graphics to commercial firms, $400. 9 Paid July salaries, $4,600. 10 Received invoice for luly advertising expense, to be paid in August, $600. 11 Paid utilities for July, $350 12 The business paid a $2,000 cash dividend. 13 Received invoice for supplies used in July, to be paid in August, S2,260. 14 Purchased computer for $4,300 cash ro be used in business starting next month. Required a. Set up accounts for the general ledger accounts with july 1 balances and enter the beginning balances. Also provide the following accounts: Equipment: Dividends: Service Fees Earned: Rent Expense: Salaries Expense: Delivery Expense: Advertising Expense: Utilities Expense: and Supplies Expense. Prepare journal entries and record the listed transactions in the appropriate T-accounts General Journal Date Description Debit Credit To record payment of rent expense. To record collections from customers To record payment of notes payable. To record customer billings. To record service fees rendered and collected. To record payments to creditors. To record collections from customers To record payment of delivery expense. To record salaries expense. (10) To record advertising expense to be paid following month. To record payment of utilities expense. (12) To record payment of dividends. (13) To record supplies expense for the month. (14) To record purchase of computer. Accounts Receivable Cash Beg Bal Beg Bal Equipment (14) Bal Notes Payable Beg Notes Payable Beg (12) (14) Bal Bal Accounts Payable Common Stock Beg Beg Bal (10) Retained Earnings (13) Beg Bal Bal Dividends (12) Bal nu Rent Expense Service Fees Earned Bal Bal Salaries Expense Bal Delivery Expense Bal Advertising Expense Utilities Expense (10) Bal Bal Supplies Expense (13) Bal b. Prepare a trial balance as of July 31. SAN DIEGO ART COMPANY Trial Balance July 31 Debit Credit Cash Accounts Receivable Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Common Stock Retained Earnings Dividends Service Fees Earned Rent Expense Salaries Expense Delivery Expense Advertising Expense Utilities Expense Supplies Expense Totals Accounts Payable Accounts Receivable Advertising Expense ense (2) Cash Common Stock Delivery Expense Dividends Equipment Notes Payable Rent Expense Retained Earnings Salaries Expense tomers. yable (4) Service Fees Earned Supplies Expense Utilities Expense