Pam Brown owns Art Graphics, a firm providing designs for advertisers and market analysts. On July 1, the businesss general ledger showed the following normal account balances:

Cash	$9,000	Accounts Payable	$2,600
Accounts Receivable	10,300	Notes Payable	5,500
		Common Stock	2,500
		Retained Earnings	8,700
Total Assets	$19,300	Total Liabilities and Stockholders' Equity	$19,300

The following transactions occurred during the month of July:

July	1	Paid July rent, $1,170.
	2	Collected $7,600 on account from customers.
	3	Paid $3,000 installment due on the $5,500 noninterest-bearing note payable.
	4	Billed customers for design services rendered on account, $17,050.
	5	Rendered design services and collected from cash customers, $1,700.
	6	Paid $1,900 to creditors on account.
	7	Collected $13,250 on account from customers.
	8	Paid a delivery service for delivery of graphics to commercial firms, $900.
	9	Paid July salaries, $5,100.
	10	Received invoice for July advertising expense, to be paid in August, $1,100.
	11	Paid utilities for July, $850.
	12	Paid stockholders a dividend of $2,500 cash.
	13	Received invoice for supplies used in July, to be paid in August, $2,760.
	14	Purchased computer for $4,800 cash to be used in business starting next month.

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.

b. Prepare a trial balance as of July 31.

• Journal Entries
• T-Accounts
• Trial Balance

General Journal
Ref.	Description	Debit	Credit
(1)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record payment of rent expense.
(2)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record collections from customers.
(3)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record payment of notes payable.
(4)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record customer billings.
(5)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record service fees rendered and collected.
(6)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record payments to creditors.
(7)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record collections from customers.
(8)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record payment of delivery expense.
(9)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record salaries expense.
(10)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record advertising expense to be paid following month.
(11)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record payment of utilitiesexpense.
(12)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record payment of dividends.
(13)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record supplies expense for the month.
(14)	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockDelivery ExpenseDividendsEquipmentNotes PayableRent ExpenseRetained EarningsSalaries ExpenseService Fees EarnedSupplies ExpenseUtilities Expense	Answer	Answer
	To record purchase of computer.