HINT: Look at the Ledger (page of T-accounts) for account titles! Trial Balance, 7/31/22 Cash Accounts receivable Supplies Accounts Davable Unearned service revenue Common stock Retained earnings Debit Credit $6,280 1,440 830 $480 1,340 4,300 2.430 $8.550 $8.550 Wolfpack Graphic Design Consultants was able to expand its business in August 2022. They moved into new offices, hired more staff, and obtained more financing. Wolfpack had the following transactions in August: Aug 1 2 Purchased computer-assisted design equipment, paying $4,000 cash and signing a 2-year note payable for $23,000. The equipment has a 5-year useful life. The promissory note has a 4.5% interest rate, and interest is payable on the first day of the month, starting in September. Issued 5,000 shares of common stock for $47,500 cash. 3 4 Fall 2022/STEP 1/ACCT B202 / Cycle Problem / Page 2 of 2 Paid $4,800 cash for a 12-month insurance policy effective August 1. Finished moving to larger offices and paid for the first two month's rent (August & July 2021) of leased office space at $5,250 per month. 7 Purchased supplies for $3,500 cash. 12 12 15 Paid semi-monthly salaries for $10,000. Salaries are paid every two weeks. The work week is 5-days a week. Collected $1,440 cash on account from Vue New Orleans. Wolfpack had billed this client in July after Wolfpack performed the services. (See trial balance on page 1) Delivered the completed design services promised to Beanlandia, who had paid $1,340 to Wolfpack in advance last month. All services relating to this payment are now completed. (See trial balance on page 1) 16 Paid $480 cash for the Entergy bill, the amount for which had been accrued at the end of July. In other words, this is July's utility bill. (See trial balance on page 1) 17 18 Met with Marigny Studios, a new client, who paid Wolfpack $7,800 cash in advance for design services to be performed over the next two months. Visited Delta Film Productions, Inc agreed on the terms of a consulting project. Wolfpack will bill the client on the 20th of each month for services performed. 21 Billed other customers $40,000 for services performed. 26 Paid bi-weekly salaries of $10,000. 29 Received a bill for $1,900 for advertising services received during August. The amount is not due until September 15. 30 Declared and paid $3,000 dividends to shareholders 31 Received $14,000 cash from clients paying on account.