MAYO COMPANY On August 1, Wendy Mayo started Mayo Company. The company provides services to a variety of clients. The company was organized as a corporation and has a monthly accounting period. The following transactions occurred during August. Aug. 1 Wendy Mayo invested $25,000 cash in the company in exchange for its common stock. Aug. 1 The company paid $948 cash for the premium on a 12-month insurance policy. Coverage begins on August 1. Aug. 1 The company paid $1,500 cash to rent office space for August Aug. 8 The company purchased $475 of supplies on account. Aug. 12 The company performed $1,245 in services for a client. The client must pay within 30 days. Aug 14 The company paid $840 cash for salary earned by an employee. Aug. 24 The company performed services for a client and received $4,000 cash. Aug. 28 The company paid $840 cash for salary earned by an employee. Aug-31 The company paid $700 cash in dividends. The company's chart of accounts follows: CHART OF ACCOUNTS ASSETS DIVIDENDS Cash Dividends Accounts Receivable Supplies REVENUES Prepaid Insurance Service Revenue LIABILITIES Accounts Payable Salaries Payable EXPENSES Salaries Expense Rent Expense Focus