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The following events apply to Equipment Services Inc. in its first year of operation: Acquired $60,000 cash from the issue of common stock. Received an

The following events apply to Equipment Services Inc. in its first year of operation:

  1. Acquired $60,000 cash from the issue of common stock.
  2. Received an $8,200 cash advance for services to be provided in the future.
  3. Purchased $2,000 of supplies on account.
  4. Earned $36,000 of service revenue on account.
  5. Incurred $16,100 of operating expenses on account.
  6. Collected $28,500 cash from accounts receivable.
  7. Made a $15,100 payment on accounts payable.
  8. Paid a $2,000 cash dividend to stockholders.
  9. Recognized $1,600 of supplies expense.
  10. Recorded $3,100 of accrued salaries expense.
  11. Recognized $3,100 of revenue for services provided to the customer in Event 2.

Required a. Record the events in T-accounts and determine the ending account balances. b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

Record the events in T-accounts and determine the ending account balances.

Record the events in T-accounts and determine the ending account balances.

Cash Accounts Receivable
Beg. Bal Beg. Bal
1. 60,000 15,100 7. 36,000
2. 8,200 2,000 8.
6. 28,500
End. Bal 79,600 End. Bal 36,000
Supplies Accounts Payable
Beg. Bal Beg. Bal
3. 2,000 1,600 9. 15,100 2,000
16,100
End. Bal 400 End. Bal 3,000
Salaries Payable Unearned Revenue
Beg. Bal Beg. Bal
11. 3,100 8,200 2.
End. Bal End. Bal 5,100
Common Stock Retained Earnings
Beg. Bal Beg. Bal
End. Bal End. Bal
Dividends Service Revenue
Beg. Bal Beg. Bal
2,000 36,000
3,100
End. Bal 2,000 End. Bal 39,100
Operating Expenses Salaries Expense
Beg. Bal Beg. Bal
16,100
End. Bal 16,100 End. Bal
Supplies Expense
Beg. Bal
1,600
End. Bal 1,600

Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

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