Question

1 Approved Answer

Posted on May 17, 2024

On July 31, 2025, the general ledger of Carla Vista Legal Services Inc. showed the following balances: Cash $4,560, Accounts Receivable $1,710, Supplies $570, Equipment

On July 31, 2025, the general ledger of Carla Vista Legal Services Inc. showed the following balances: Cash $4,560, Accounts Receivable $1,710, Supplies $570, Equipment $5,700, Accounts Payable $4,670, Common Stock $3,990, and Retained Earnings $3,880. During August, the following transactions occurred.

Aug. 3		Collected $1,370 of accounts receivable due from customers.
5		Received $1,480 cash for issuing common stock to new investors.
6		Paid $3,080 cash on accounts payable.
7		Performed legal services of $7,410, of which $3,420 was collected in cash and the remainder was due on account.
12		Purchased additional equipment for $1,370, paying $460 in cash and the balance on account.
14		Paid salaries $3,990, rent $1,030, and advertising expenses $315 for the month of August.
18		Collected the balance for the services performed on August 7.
20		Paid cash dividend of $570 to stockholders.
24		Billed a client $1,140 for legal services performed.
26		Received $2,280 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 $5,130. 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 $315; it is not due until September 15.
31		Paid income tax for the month $570.

(a)

Your answer is correct.

Using T-accounts, enter the beginning balances to the ledger.

Cash
choose a transaction date

Correct answer	enter a debit balance Correct answer	choose a transaction date

Correct answer	enter a credit balance Correct answer

Accounts Receivable
choose a transaction date

Correct answer	enter a debit balance Correct answer	choose a transaction date

Correct answer	enter a credit balance Correct answer

Supplies
choose a transaction date

Correct answer	enter a debit balance Correct answer	choose a transaction date

Correct answer	enter a credit balance Correct answer

Equipment
choose a transaction date

Correct answer	enter a debit balance Correct answer	choose a transaction date

Correct answer	enter a credit balance Correct answer

Accounts Payable
choose a transaction date

Correct answer	enter a debit balance Correct answer	choose a transaction date

Correct answer	enter a credit balance Correct answer

Common Stock
choose a transaction date

Correct answer	enter a debit balance Correct answer	choose a transaction date

Correct answer	enter a credit balance Correct answer

Retained Earnings
choose a transaction date

Correct answer	enter a debit balance Correct answer	choose a transaction date

Correct answer	enter a credit balance Correct answer

eTextbook and Media

Assistance Used

List of Accounts

Attempts: 13 of 15 used

(b)

Your answer is partially correct.

Journalize the August transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 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. List all debit entries before credit entries.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date

Correct answer	enter an account title Correct answer	enter a debit amount Incorrect answer	enter a credit amount Incorrect answer
	enter an account title Correct answer	enter a debit amount Incorrect answer	enter a credit amount Incorrect answer
choose a transaction date

Correct answer	enter an account title Correct answer	enter a debit amount Incorrect answer	enter a credit amount Incorrect answer
	enter an account title Correct answer	enter a debit amount Incorrect answer	enter a credit amount Incorrect answer
choose a transaction date

Correct answer

enter an account title Correct answer