Question
On July 31, 2025, the general ledger of Sheridan Legal Services Inc. showed the following balances: Cash $3,440, Accounts Receivable $1,290, Supplies $430, Equipment
On July 31, 2025, the general ledger of Sheridan Legal Services Inc. showed the following balances: Cash $3,440, Accounts Receivable $1,290, Supplies $430, Equipment $4,300, Accounts Payable $3,530, Common Stock $3,010, and Retained Earnings $2,920. During August, the following transactions occurred. Aug. 3 Collected $1,030 of accounts receivable due from customers. 5 Received $1,120 cash for issuing common stock to new investors. 6 Paid $2,320 cash on accounts payable. 7 Performed legal services of $5,590, of which $2,580 was collected in cash and the remainder was due on account. 12 Purchased additional equipment for $1,030, paying $340 in cash and the balance on account. 14 14 Paid salaries $3,010, rent $770, and advertising expenses $235 for the month of August. 18 Collected the balance for the services performed on August 7. 24 2 2 2 20 Paid cash dividend of $430 to stockholders. Billed a client $860 for legal services performed. 26 Received $1,720 from Laurentian Bank; the money was borrowed on a bank note payable that is due in 6 months. 27 27 28 Agreed to perform legal services for a client in September for $3,870. The client will pay the amount owing after the services have been performed. Received the utility bill for the month of August in the amount of $235; it is not due until September 15. (b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. (Use Accounts.) (Post entries in the order of journal entries presented in the previous question.) Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Pavable eTextbook and Medla Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Insurance Expense Utilities Expense Supplies Expense
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