Journalize transactions, post, and prepare a trial balance. P3.9 (LO 3, 4, 5), AP On July 31, 2025, the general ledger of Hills Legal Services Inc. showed the following balances: Cash $4,000, Accounts Receivable $1,500, Supplies $500, Equipment $5,000, Accounts Payable $4,100, Common Stock $3,500, and Retained Earnings $3,400. During August, the following transactions occurred. Collected $1,200 of accounts receivable due from customers. Received $1,300 cash for issuing common stock to new investors. Paid $2,700 cash on accounts payable. 7 Performed legal services of $6,500, of which $3,000 was collected in cash and the remainder was due on account. 12 Purchased additional equipment for $1,200, paying $400 in cash and the balance on account. 14 Paid salaries $3,500, rent $900, and advertising expenses $275 for the month of August. 18 Collected the balance for the services performed on August 7. Aug 3 5 6 20 Paid cash dividend of $500 to stockholders. 24 Billed a client $1,000 for legal services performed. 26 Received $2,000 from Laurentian Bank; the money was borrowed on a bank note payable that is due in 6 months. 27 Agreed to perform legal services for a client in September for $4,500. The client will pay the amount due after the services have been performed. 28 Received the utility bill for the month of August in the amount of $275; it is not due until September 15. 31 Paid income tax for the month $500. Instructions a. Using T-accounts, enter the beginning balances to the ledger. b. Journalize the August transactions. c. Post the August journal entries to the ledger. d. Prepare a trial balance on August 31, 2025. Cash Tot. trial balance $6,225 $20,175

6 Pid 52,700 cash oo accounta payalie. 12 Purchased adfitional equipesent for $1,200, payng $400 ia casb and be balance ve accouna 21 Biled a dient \$1, 900 Ser irgal wervices performed. perbermed Instructiens c. Poat the Auguat joarnal entries to the fedeci. d. Prepare a tal balunce de Augue 31, 2025. Canh Tec thal bulanes 56,225$20,175