Question 5 On July 31, 2017, the general ledger of Shamrock, Inc. showed the following balances: Cash $4,320, Accounts Receivable $1,620, Supplies $540, Equipment $5,400, Accounts Payable $4,430, Common Stock $3,780, and Retained Earnings $3,670. During August, the following transactions occurred. | Aug. 3 | Collected $1,300 of accounts receivable due from customers. | | 5 | Received $1,400 cash for issuing common stock to new investors. | | 6 | Paid $2,920 cash on accounts payable. | | 7 | Performed legal services of $7,020, of which $3,240 was collected in cash and the remainder was due on account. | | 12 | Purchased additional equipment for $1,300, paying $430 in cash and the balance on account. | | 14 | Paid salaries $3,780, rent $970, and advertising expenses $295 for the month of August. | | 18 | Collected the balance for the services performed on August 7. | | 20 | Paid dividends of $540 to stockholders. | | 24 | Billed a client $1,080 for legal services performed. | | 26 | Received $2,160 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 $4,860. 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 $295; it is not due until September 15. | | 31 | Paid income tax for the month $540. | |
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