Question 3 Carin owns and operates the Carin Consulting business. On August 1, 2020 her ledger showed the following account balances (Ignore GST). Debit $ 20,000 Credit $ 16,000 18,000 1,000 0 0 0 10,000 5,000 0 0 0 4,000 700 150 Cash Accounts Receivable Inventory Supplies Prepaid Insurance Computer Accumulated Depreciation Computer Equipment Accumulated Depreciation Equipment Motor Vehicle Accumulated Depreciation Motor Vehicle Land Accounts Payable Unearned Revenue Telephone Payable Notes Payable Mortgage Payable Contributed Capital Retained Earnings Consulting Service Revenue Sales Revenue Cost of Goods Sold Supplies Expense Advertising Expense Insurance Expense Telephone Expense Rent Expense Depreciation Expense Dividends TOTAL 0 0 25,000 30,150 0 0 0 0 0 0 0 0 0 0 0 65,000 65,000 The following transactions occurred during August 2020: 1. The owner contributed an additional $2,000 cash and equipment valued at $5,000 to the business. 2. Purchased land for $260,000 by arranging a mortgage with the bank. 3. Paid $1,500 cash to purchase a computer for the business. 4. Purchased a motor vehicle for $36,000 by arranging a promissory note with a lender. 5. Paid $3,000 to creditor (Accounts Payable) for goods previously purchased in July. 4 6. 7. 9. Paid $150 for a telephone bill that related to charges incurred during July. An adjusting entry for $150 was made at the end of July to accrue this telephone expense. Performed consulting services for a customer and received $6,000 cash. 8. Billed (invoiced) a client $9,000 for consulting services performed during August. Received $4,000 cash from customers who had previously been billed (invoiced) for services performed during July. 10. Received and paid an invoice for $2,000 relating to August's advertising expense. 11. Distributed $7,000 cash dividends to the owner of the business. Received $1,000 cash for consulting services to be performed in September. The cash receipt was recorded as a liability 13. Received $2,000 cash for consulting services to be performed in September. The cash receipt was recorded as revenus. 14. Purchased supplies on credit $700. The supplies purchased were recorded as an asset. 15. Paid $1,200 for a 12-month insurance policy. The insurance was recorded as an asset. 16. Paid $6,000 cash for rent for August, September and October. The business recorded the rent as an expenses 12 Required: A. Record the above transactions in a general journal using only the ledger accounts given. B. Post to the ledger, (remembering first to enter the opening balances)