The Smith 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.
Assignment
1. Set up T accounts in a ledger and post the ending balances from Chapter 1.
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. From the trial balance, prepare 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, $80.
l. Paid $450 (check #8099) for insurance for the month.
m. Paid $150 (check #8100) of the amount due from transaction d in Chapter 1.
n. Paid advertising expense for the month, $900 (check #8101).
o. Billed a client (Erin Caffrey) for services rendered, $1,700.
p. Collected $1,300 for services rendered. (Assume cash collection occurred at the same time services were 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 $70 in stamps.
s. Purchased $300 worth of supplies from Computers R Us on credit.

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