The following events apply to Pearson Service Co. for Year 1, its first year of operation:

Received cash of $68,000 from the issue of common stock.

Performed $135,000 worth of services on account.

Paid $91,000 cash for salaries expense.

Purchased supplies for $21,000 on account.

Collected $105,000 of accounts receivable.

Paid $15,700 of the accounts payable.

Paid a $6,800 dividend to the stockholders.

Had $2,400 of supplies on hand at the end of the period.

Required

Record these events in general journal form.

Post the entries to T-accounts and determine the ending balance in each account.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1

Post the entries to T-accounts and determine the ending balance in each account.

ASSETS

=

LIABILITIES

+

STOCKHOLDERS EQUITY

Cash

Accounts Payable

Common Stock

Bal.

Bal.

Bal.

Accounts Receivable

Dividends

Bal.

Bal.

Supplies

Service Revenue

Bal.

Bal.

Salaries Expense

Bal.

Supplies Expense

Bal.