Sweetwater Temporary Clerical Help Service opened for business in June 2009. From the opening until the end of the year, Sweetwater engaged in the activities described below. So that a realistic trial balance can be prepared, the events described below are aggregations of many individual events.

a. Sold 10,000 shares of common stock for $3.50 per share

b. Purchased office equipment from OfficeMax for $14,200 cash

c. Received $121,800 from clients for services provided

d. Paid wages of $84,900

e. Borrowed $15,000 from the Bank of America on a three-year note payable

f. Paid office rent of $17,500

g. Purchased office supplies on credit for $1,300 from OfficeMax

h. Paid $1,000 toward the payable established in transaction g

i. Paid telephone charges incurred during the year of $910

Required:

1. Analyze the events for their effect on the accounting equation.

2. Prepare journal entries (ignore the date since these events are aggregations of individual events).

3. Post the journal entries to ledger accounts.

4. Prepare a trial balance.