Record transactions in journal, post to T-accounts, and prepare trial balance

Economy Laundry Company had the following transactions in August 2012:

Aug.

1

Issued capital stock for cash, $150,000.

3

Borrowed $40,000 from the bank on a note.

4

Purchased cleaning equipment for $25,000 cash.

6

Performed services for customers who promised to pay later, $16,000.

7

Paid this month's rent on a building, $2,800.

10

Collections were made for the services performed on August 6, $3,200.

14

Supplies were purchased on account for use this month, $3,000.

17

A bill for $400 was received for utilities for this month.

25

Laundry services were performed for customers who paid immediately, $22,000.

31

Paid employee salaries, $6,000.

31

Paid cash dividend, $2,000.

1. a.make journal entries for these transactions.
2. b.Post the journal entries to T-accounts. Enter the account number in the Posting Reference column of the journal as you post each amount. Use the following account numbers:

Acct.

No.Account Title

100 Cash

103 Accounts Receivable

170 Equipment

200 Accounts Payable

201 Notes Payable

300 Capital Stock

320 Dividends

400 Service Revenue

507 Salaries Expense

511 Utilities Expense

515 Rent Expense

518 Supplies Expense

c.make trial balance as of August 31, 2012.