The Sanchez Computer Center created its chart of accounts as follows:

You will use this chart of accounts to complete the Continuing Problem.
The following problem continues from Chapter 1. The balances as of July 31 have been brought forward in the working papers that accompany this text.
Assignment
1. Set up T accounts in a ledger.
2. Record transactions k through s in the appropriate T accounts.
3. Foot and take the balances of the T accounts where appropriate.
4. Prepare a trial balance at the end of August.
5. Prepare from the trial balance an income statement, statement of owner€™s equity, and a balance sheet for the two months ending with August 31, 201X.
k. Received the phone bill for the month of July, $155.
l. Paid $150 (check #8099) for insurance for the month.
m. Paid $200 (check #8100) of the amount due from transaction d in Chapter 1.
n. Paid advertising expense for the month, $1,400 (check #8101).
o. Billed a client (Jeannine Sparks) for services rendered, $850.
p. Collected $900 for services rendered.
q. Paid the electric bill in full for the month of July (check #8102, transaction h, Chapter 1).
r. Paid cash (check #8103) for $50 in stamps.
s. Purchased $200 worth of supplies from Computer Connection oncredit.

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Chart of Accounts as of July 1, 201X Assets 1000 Cash 1020 Accounts Receivable 1030 Supplies 1080 Computer Shop Equipment 1090 Office Equipment Liabilities 2000 Accounts Payable owner's Equity 3000 Freedman, Capital 3010 Freedman, Withdrawals Revenue 4000 Service Revenue Expenses 5010 Advertising Expense 5020 Rent Expense 5030 Utilities Expense 5040 Phone Expense 5050 Supplies Expense 5060 Insurance Expense 5070 Postage Expense