On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Sheffield Ltd. $2,440 Accounts payable Accounts receivable Accumulated depreciation-equipment 4,310 1,860 Cash 5,660 12.200 1,270 10.200 Common shares Deferred revenue Equipment Interest receivable Note receivable, due October 31, 2021 Retained earnings Salaries payable 21 4,200 6,021 1,550 Supplies 950 During August, the following summary transactions were completed. Aug. 1 3 6 10 13 15 Paid $420 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. (Hint: Use the Prepaid Advertising account.) Paid August rent $370. (Hint: Use the Prepaid Rent account.) Received $2,980 cash from customers in payment of accounts. Paid $3.240 for salaries due employees, of which $1,690 is for August and $1,550 is for July salaries payable. Received $3,460 cash for services performed in August Purchased additional equipment on account $1,810. Paid creditors $1,810 of accounts payable due. Purchased supplies on account $790. Paid salaries $2,640 Performed services worth $4,660 on account and billed customers. Received $710 from customers for services to be provided in the future. Declared and paid a $460 dividend. 17 22 24 27 29 31 Date Account Titles and Explanation Debit Credit Aug. 1 Prepald Advertising 420 Cash Aug. 3 Prepald Rent 370 Cash Aug. 6 Cash 2980 Accounts Recelvable Aug. 10 Salarles Payable 1550 Salarles Expense 1690 Cash Aug. 13 Cash 3460 Service Revenue Aug. 15 Equipment 1810 Accounts Payable Aug. 17 V Accounts Payable 1810 Cash Aug. 22 Supplies 790 Accounts Payable Aug. 24 V Salarles Expense 2640 Cash Aug. 27 Accounts Receivable 4660 Service Revenue Aug. 29 Cash 710 Deferred Revenue Aug. 31 Dividends Declared 460 Cash Aug. 1 Bal. 5660 Aug. 1 420 Aug. 6 2980 Aug. 3 V 370 Aug. 13 3460 Aug. 10 3240 Aug 29 710 Aug. 17 1810 Aug. 24 2640 Aug. 31 460 Aug 31 Bal 12810 Aug 31 Bal. 8640 Accounts Receivable Aug. 1 Bal 4310 Aug. 6 2980 Aug 27 4660 Aug 31 Bal. 8970 Aug 31 Bal. 2980 Prepaid Advertising Aug 1 Aug 31 Bal. 420 Aug. 31 Bal. Supplies Aug 1 Bal 950 Aug 22 790 Aug. 22 Aug 31 Bal. 1740 Aug 31 Bal Prepaid Rent Aug. 1 370 Aug 31 Bal. 370 Aug 31 Bal. Note Receivable Aug 1 Bal. 4200 Aug 31 Bal. 4200 Aug 31 Bal. Interest Receivable Aug. 1 Bal 21 Aug 31 Bal. 21 Equipment Aug. 1 Bal 10200 Aug. 15 1810 Aug 31 Bal. 18210 Aug 31 Bal. Accumulated Depreciation - Equipment Aug. 1 Bal 1860 Aug. 31 1860 Accounts Payable Aug 17 1810 Aug 1 Bal 2440 Aug. 15 1810 Aug 22 790 Aug 31 Bal 1810 Aug 31 Bal 5040 Salaries Payable Aug. 10 1550 Aug. 1 Bal 1550 Aug 31 Bal. Deferred Revenue Aug. 1 Bal 1270 Aug. 31 Aug. 29 710 Retained Earnings Aug. 1 Bal 6021 Aug 31 Bal. Aug 31 Bal 6021 Dividends Declared Aug 31 460 Aug 31 Bal. 460 Aug 31 Bal Service Revenue Aug. 13 3460 Aug. 27 4660 Aug 31 Bal. 8120 Salaries Expense Aug. 10 1690 Aug. 24 2640 Aug 31 Bal V 4330
