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Chapter 2 Problem 8 P 8. Brilliant Ads Corporation is a marketing firm. The company's trial balance on July 31, 2011, appears below: During August, the company completed the following transactions: Aug. 2 Paid rent for August, $650. 3 Received cash from customers on account, $2,300. 7 Ordered supplies, $380. 10 Billed customers for services provided, $2,800. 12 Made a payment on accounts payable, $1,100. 14 Received the supplies ordered on August 7 and agreed to pay for them in 30 days, $380. 17 Discovered some of the supplies were not as ordered and returned them for full credit, $80. 19 Received cash from a customer for services provided, $4,800. 24 Paid the utility bill for August, $280. 26 Received a bill, to be paid in September, for advertisements placed in the local newspaper during August to promote Brilliant Ads Corporation, $700. 29 Billed a customer for services provided, $2,700. 30 Paid salaries for August, $3,800. 31 Declared and paid a dividend of $1,200 Chapter 2 Problem 8 REQUIRED 1. Open accounts in the ledger for the accounts in the trial balance plus the following accounts: Dividends (313), Marketing Fees (411), Salaries Expense (511), Rent Expense (512), Utilities Expense (513), and Advertising Expense (515). 2. Enter the July 31, 2011, account balances from the trial balance. 3. Enter the above transactions in the general journal (Pages 22 and 23). 4. Post the journal entries to the ledger accounts. Be sure to make the appropriate posting references in the journal and ledger as you post. 5. Prepare a trial balance as of August 31, 2011. Chapter 2, P 8. 3. Transactions entered in the general journal (Requirements 1, 2, 4, and 5 follow) General Journal Date Description 2011 Aug. Paid August rent 3 Recorded receipt of cash on account 7 10 Billed customers for services 12 Paid on account 14 Purchased supplies on credit 17 Returned supplies for credit 19 Recorded receipt of payment for services 24 Paid August utility bill 26 Recorded receipt of August advertising bill Page 22 Post. Ref. Debit Credit Chapter 2, P 8. (Continued) General Journal Date Description 2011 Aug. Billed customer for services Paid salaries for August Declared and paid dividend Page 23 Post. Ref. Debit Credit Chapter 2, P 8. (Continued) 1. 2. 4. Ledger accounts set up Amounts from July trial balance entered Entries from journal posted to ledger accounts Cash Date Account No. 111 Item Post. Ref. Balance Debit Credit Debit Credit 2011 July Aug. Accounts Receivable Date Item Account No. 113 Post. Ref. Balance Debit Credit Debit Credit 2011 July Aug. Supplies Date 2011 July Aug. Account No. 115 Item Post. Ref. Balance Debit Credit Debit Credit Chapter 2, P 8. (Continued) Office Equipment Date Account No. 141 Item Post. Ref. Balance Debit Credit Debit Credit 2011 July Accounts Payable Date Account No. 212 Item Post. Ref. Balance Debit Credit Debit Credit 2011 July Aug. Common Stock Date Account No. 311 Item Post. Ref. Balance Debit Credit Debit Credit 2011 July Retained Earnings Date Account No. 312 Item Post. Ref. Balance Debit Credit Debit Credit 2011 July Dividends Date 2011 Aug. Account No. 313 Item Post. Ref. Balance Debit Credit Debit Credit Chapter 2, P 8. (Continued) Marketing Fees Date Account No. 411 Item Post. Ref. Balance Debit Credit Debit Credit 2011 Aug. Salaries Expense Date Account No. 511 Item Post. Ref. Balance Debit Credit Debit Credit 2011 Aug. Rent Expense Date Account No. 512 Item Post. Ref. Balance Debit Credit Debit Credit 2011 Aug. Utilities Expense Date Account No. 513 Item Post. Ref. Balance Debit Credit Debit Credit 2011 Aug. Advertising Expense Date 2011 Aug. Item Account No. 515 Post. Ref. Balance Debit Credit Debit Credit Chapter 2, P 8. (Continued) 5. Trial balance prepared Brilliant Ads Corporation Trial Balance August 31, 2011 Cash Accounts Receivable Supplies Office Equipment Accounts Payable Common Stock Retained Earnings Dividends Marketing Fees Salaries Expense Rent Expense Utilities Expense Advertising Expense $ 6. User Insight: Transactions for August 3, 10, 19, and 29 examined ______ $