Question
On July 31, 2022, the general ledger ofBlossomLegal Services Inc. showed the following balances: Cash $4,800, Accounts Receivable $1,800, Supplies $600, Equipment $6,000, Accounts Payable
On July 31, 2022, the general ledger ofBlossomLegal Services Inc. showed the following balances: Cash $4,800, Accounts Receivable $1,800, Supplies $600, Equipment $6,000, Accounts Payable $4,920, Common Stock $4,200, and Retained Earnings $4,080. During August, the following transactions occurred.
Aug. 3 Collected $1,440of accounts receivable due from customers.
5 Received $1,560cash for issuing common stock to new investors.
6 Paid $3,240cash on accounts payable.
7 Performed legal services of $7,800, of which $3,600was collected in cash and the remainder was due on account.
12 Purchased additional equipment for $1,440, paying $480in cash and the balance on account.
14 Paid salaries $4,200, rent $1,080, and advertising expenses $330for the month of August.
18 Collected the balance for the services performed on August 7.
20 Paid cash dividend of $600to stockholders.
24 Billed a client $1,200for legal services performed.
26 Received
$2,400from 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 $5,400. 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 $330; it is not due until September 15.
31 Paid income tax for the month $600.
Post the August journal entries to the ledger.
Cash
Accounts Receivable
Accounts Payable
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