Transaction Analysis and Trial Balance Pam Black owns Artsy Graphics, a firm providing designs for advertisers and market analysts. On July 1, the business's general ledger showed the following normal account balances: $6,800 Accounts Payable Cash $2,100 Accounts Receivable 10,700 Notes Payable 4,200 Common Stock 2,000 Retained Earnings 9,200 Total Assets $17,500 Total Liabilities and Stockholders' Equity $17,500 The following transactions occurred during the month of July: 1 Paid July rent, $510. 2 Collected $7,100 on account from customers. 3 Paid $1,800 installment due on the $3,300 noninterest-bearing note payable. 4 Billed customers for design services rendered on account, $18,100. 5 Rendered design services and collected from cash customers, $1,200. 6 Paid $1,400 to creditors on account. 7 Collected $12,750 on account from customers. 8 Paid a delivery service for delivery of graphics to commercial firms, $650. 9 Paid July salaries, $5,300. 10 Received invoice for July advertising expense, to be paid in August, $600. 11 Paid utilities for July, $250. 12 Paid stockholders a dividend of $2,000 cash. 13 Received invoice for supplies used in July, to be paid in August, $2,260. 14 Purchased computer for $7,000 cash to be used in business starting next month. Required: a. Set up accounts for the general ledger with July 1 balances and enter the beginning balances. Also provide the following accounts: Equipment; Service Fees Earned; Rent Expense; Salaries Expense: Delivery Expense; Advertising Expense; Utilities Expense: Supplies Expense; and Dividends. Prepare journal entries and record the listed transactions in the appropriate T-accounts. b. Prepare a trial balance as of July 31. Journal Entries T-Accounts Trial Balance Cash Accounts Receivable Equipment Notes Payable Beg Bal 0 0 Beg 0 (14) 0 Beg C U 0 (21 U 0 U3 0 03: C U 121 0 (41 U 0 Bal C U 131 0 U 0 151 0 Bal U 0 1G1 171 0 181 0 191 (11) 0 0 (12) (14) 0 0 Bal Accounts Payable Common Stock Retained Earnings Dividends Bag 0 Beg 0 Bag 0 161 0 Ba 0 Bal 0 0 0 12 Bal 0 0 (100 0 (13) 0 : Bal 11 0 Service Fees Earned 141 I 151 Cal 0 Advertising Expense (10) U Bal 0 Bal Rent Expense 9 Utilities Expense Salaries Expense Delivery Expense 191 0 0 0 Bal I! I Ball 0 Supplies Expense (13) 0 Bal U D