Q1: General Entries:

A few of the ABC Services Inc, business transactions occurred during august are described below. Analyze and journalize the transactions:

August 1. Company billed its customer $3000 on account for services provided. Customers are required to make full payment within 30 days

August 3. The company issued an additional 2500 shares of capital stock at $8 per share. The cash raised will be used to purchase new testing equipments in November

August 5. Purchased testing supplies costing $4700, paying $700 and charging the remainder on the companys 30 day account Payable at Zoe Chemicals. The testing supplies are expected to last several months.

August 12.returned to Zoe chemicals $ 300 of testing supplies that were not needed. The return of these supplies reduced by $ 300 the amount owed to Zoe Chemicals.

August 22. The company received $600 cash from customers it had billed on August 1.

August 27. Company paid its outstanding account payable to Zoe chemicals

August 30 a cash dividend totaling $6800 was declared and paid to the companys stockholder.

Requirements:

1. Prepare journal entries including explanations for the above transactions. (2 marks)
2. Prepare general ledger. (2 marks)
3. Trial balance (1 marks)
4. Financial statements (that are needed) (3 marks)