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On July 31, 2022, the general ledger of Ivanhoe Legal Services Inc. showed the following balances: Cash $3,200, Accounts Receivable $1,200, Supplies $400, Equipment $4,000,
On July 31, 2022, the general ledger of Ivanhoe Legal Services Inc. showed the following balances: Cash $3,200, Accounts Receivable $1,200, Supplies $400, Equipment $4,000, Accounts Payable $3,280, Common Stock $2,800, and Retained Earnings $2,720. During August, the following transactions occurred. Aug. 3 Collected $960 of accounts receivable due from customers. 5 Received $1,040 cash for issuing common stock to new investors. 6 Paid $2,160 cash on accounts payable. 7 Performed legal services of $5,200, of which $2,400 was collected in cash and the remainder was due on account. 12 Purchased additional equipment for $960, paying $320 in cash and the balance on account. 14 Paid salaries $2,800, rent $720, and advertising expenses $220 for the month of August. 18 Collected the balance for the services performed on August 7. 20 Paid cash dividend of $400 to stockholders. 24 Billed a client $800 for legal services performed. 26 Received $1,600 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 $3,600. The client will pay the amount owing after the services have been performed. 28 Received the utility bill for the month of August in the amount of $220; it is not due until September 15. 31 Paid income tax for the month $400. Using T-accounts, enter the beginning balances to the ledger. Cash Accounts Receivable Supplies Equipment Accounts Payable Common Stock Retained Earnings Journalize the August transactions. (If no entry is required, select "No entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
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