P2-72B. (Learning Objectives 2, 3, 4: Understanding how accounting works; journalizing transactions; posting; preparing and using a trial balance) During the first month of operations, O'Shea Plumbing, Inc., completed the following transactions: Jan 2 3 4 7 11 O'Shea received 28,000 cash and issued ordinary shares to the shareholders. Purchased supplies, 500, and equipment, 3,100, on account. Performed service for a client and received cash, 3,000. Paid cash to acquire land, 20,000. Performed service for a customer and billed the customer, 1,200. We expect to collect within one month. Paid for the equipment purchased January 3 on account. Paid the telephone bill, 120. Received partial payment from customer on account, 570. Paid the water and electricity bills, 120. Received 1,300 cash for servicing the heating unit of a customer. Paid employee salaries, 1,800. Declared and paid dividends of 2,500. 16 17 18 22 29 31 31 Requirements 1. Record each transaction in the journal. Key each transaction by date. Explanations are not required. 2. Post the transactions to the T-accounts, using transaction dates as posting references. 3. Prepare the trial balance of O'Shea Plumbing, Inc., at January 31 of the current year. 4. The manager asks you how much in total resources the business has to work with, how much it owes, and whether January was profitable (and by how much)