Problem 3-9A

On July 31, 2017, the general ledger of Tamarisk, Inc. showed the following balances: Cash $3,600, Accounts Receivable $1,350, Supplies $450, Equipment $4,500, Accounts Payable $3,690, Common Stock $3,150, and Retained Earnings $3,060. During August, the following transactions occurred.

Aug. 3		Collected $1,080 of accounts receivable due from customers.
5		Received $1,170 cash for issuing common stock to new investors.
6		Paid $2,430 cash on accounts payable.
7		Performed legal services of $5,850, of which $2,700 was collected in cash and the remainder was due on account.
12		Purchased additional equipment for $1,080, paying $360 in cash and the balance on account.
14		Paid salaries $3,150, rent $810, and advertising expenses $250 for the month of August.
18		Collected the balance for the services performed on August 7.
20		Paid dividends of $450 to stockholders.
24		Billed a client $900 for legal services performed.
26		Received $1,800 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 $4,050. 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 $250; it is not due until September 15.
		31 Paid income tax for the month $450. Question 1: 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.) Question 2: Post the August journal entries to the ledger. (Post entries in the order of information presented in the question.) Question 3: Prepare a trial balance on August 31, 2017.