On July 31 2017, the general ledger of Hills Legal Services, Inc, showed the following balances:

cash $4000

Accounts Receivable $1500

Supplies $500

Equipment $5000

Accounts Payable: $4,100

Common Stock $3500

Retained Earnings $3400

During August, the following transactions occurred:

August 3rd: Collected $1200 of accounts receivable due from customers

August 5: recieved $1300 cash from issuing common stock to new investors

August 6: paid $2700 on accounts payable

August 7: performed legal services of $6500, of which $3000 was collected in cash and the remainder was due on account.

August 12: Purchased additional equipment for $1200, paying $400 on cash and the balance on account

August 14: Paid salaries $3500, rent $900, and advertising expenses $275 for month of August

August 18: collected blanace for the services performed on August 7

August 20: Paid dividends of $500 to stockholders

August 24: Billed a client $1,000 for services performed

August 26: received $2000 from Laurentian Bank, the money was borrowed on a bank note payable that is due in 6 months

August 27: Agreed to perform legal services for a client in September for $4500. The client will pay the amount owing after the services have been performed

August 28: received the utility bill for the month of august in the amount of $275; it is not due until September 15.

August 31: paid income tax for the month of $500.

Part 1: Using T-accounts enter the beginning balances to the ledger.

Part 2: Journalize the August transactions

Part 3: Post the August journal entries to he ledger

Part 4: Prepare a trial balance on August 31 2017.