Chapter 3 The Accounting Cyde: Capturing Economic Events 103-7. 103-3. 103-9 PROBLEM 3.6A Short Comprehensive Donegan's Lawn Care Service began operations in July, current year. The company uses the fol lowing general ledger accounts. Cash Capital Stock Accounts Receivable Retained Earnings Office Supplies Mowing Revenue Mowing Equipment Salaries Expense Accounts Payable Fuel Expense Notes Payable The company engaged in the following transactions during its first month of operations July 18 Issued 500 shares of capital stock to Patrick Donegan for $1.500. July 22 Purchased office supplies on account for $100. July 23 Purchased mowing equipment for $2.000, paying $400 cash and issuing a 60-day note payable for the remaining balance. July 24 Paid S25 cash for gasoline. All of this fuel will be used in July July 25 Billed Lost Creek Cemetery $150 for mowing services. The entire amount is due July July 26 Billed Golf View Condominiums $200 for mowing services. The entire amount is die August July 30 Collected $150 from Last Creek Cemetery for mowing services provided on July 15 July 31 Paid S80 salary to employee Teddy Grimm for work performed in July a. Recand each of these transactions in general journal form. Include a brief explanation of the transaction as part of each journal entry. h. Post cach entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3-8). c. Prepare a trial balance dated July 31. current year. d. Explain why the Retained Earnings account has a zero balance in the trial balance Sanlucas, Inc. provides home inspection services to its clients. The following is the company trial balance dated June 1. current year. 103- 603-5 PROBLEM 27A SANLUCAS, INC. TRIAL BALANCE JUNE 1. CURRENT YEAD