Pam Brown owns Art Graphics, a firm providing designs for advertisers and market analysts. On July 1, the business's general ledger showed the following normal account balances Cash Accounts Receivable $2,100 5,000 2,000 9,200 $18,300 $8,500 Accounts Payable 9,800 Notes Payable Common Stock Retained Earnings Equity yo $18,300 Total Liabilities and Stockholders Total Assets the The following transactions occurred during the month of July: urts a July 1 Paid July rent, $670 ne no 2 Collected $7,100 on account from customers. Paid $2,500 installment due on the $5,000 noninterest-bearing note payable 2 e webs Biled customers for design services rendered on account $16,550. Rendered design services and collected from cash customers $1,200. 6 Paid $1,400 to creditors on account 7 Collected $12.750 on account from customers s Paid a delivery service for delivery ot graphics to commercal 9 Paid july salares, $4,600. firms, $400. ) sit for Received invoice for july advertising expense, to be paid in MacBook Ai Received invoice for July advertising expense, to be paid in n August, $600. Paid utilities for July, $350. Paid stockholders a dividend of $2,000 cash. Received invoice for supplies used in July, to be paid in August, 11 12 13 $2,260. Purchased computer for $4,300 cash to be used in business starting next month 14 Required a. Set up accounts for the general ledger with July 1 balances and enter the beginning balances. Also provide the following accounts: Equipment Service Fees Earned; Rent Expense; Salaries Expense: Delivery Expense; Advertising Expense;: Utilities Expense: Supplies Expense; and Dividends. Prepare journal entries and record the listed transactions in the appropriate T-accounts. General Journal Date Description Debit Credit To record payment of rent expense 2 To record collections from customers. To record payment of notes payable. To record customer billings. To record service fees rendered and collected To record collections from customers To record payment of delivery expense. To record salaries expense. (10) To record advertising expense to be paid following month To record payment of utilities expense. (12) To record payment of dividends. (13) To record supplies expense for the monthi (14) To record purchase of computer E Menu Cash Beg Bal (12) (14) Bal Accounts Receivable Menu Accounts Receivable Beg Bal Equipment (14) Bal Notes Payable Beg Bal Udilities Expense Bal Supplies Expense (13) Bal b. Prepare a trial balance as of July 31 ART GRAPHICS Trial Balance July 31 Debit Credit Cash Accounts Receivable Equipment Accounts Payable Notes Payable Common Stock 2 Notes Payable Common Stock Retained Earnings Dividends Service Fees Earned Rent Expense Salaries Expense Delivery Expense Advertising Expense Utilities Expense Supplies Expense Totals e Answers Previous page Finish attempt