Transaction Analysis

es, $9,800 P2-13B. Transaction Analysis and Trial Balance Ashley Somers owns San Diego Art Company, a firm L04, 5,6 providing designs for advertisers, market analysts, and others. On July I, the business's general ledger showed the following normal account balances: 000. Cash Accounts receivable... $14,500 Accounts payable. 9,800 Notes payable $ 2,100 ..7,000 Total assets .$24.300 Total Liabilities and Stockholders' Equity..$24.300 Equity . 4.000 Retained earnings eadings: Cash .. and Retaind The following transactions occurred during the month of July: n, and total all mber 31. July 1 Paid July rent, $670 2 Collected $8,100 on account from customers. 3 Paid $3,500 installment due on the $7,000 noninterest-bearing note payable to a relative. 4 Billed customers for design services rendered on account, $19,550. 5 Rendered design services and collected from cash customers, $1,400. 6 Paid $1,900 to creditors on account. 7 Collected $16,500 on account from customers 8 Paid a delivery service for delivery of graphics to commercial firms, $400. 9 Paid July salaries, $4,600. 10 Received invoice for July advertising expense, to be paid in August, $800 11 Paid utilities for July, $350. 12 The business paid a $2,000 cash dividend. 13 Received invoice for supplies used in July, to be paid in August, $2.260. 14 Purchased a computer for $4,300 cash to be used in the business starting next montlh T-account consulting ser ing Required a. Set up accounts for the general ledger accounts with July I balances and enter the beginning 5) balances. Also provide the following accounts: Equipment: Dividends; Service Fees Earned Rent Expense; Salaries Expense; Delivery Expense; Advertising Expense; Utilities Expense: and Supplies Expense. Prepare journal entries and record the listed transactions in the appropriate T-accounts h. Prepare a trial balance as of July 31