Question

Current Attempt in Progress On July 31, 2022, the general ledger of Cullumber Legal Services Inc. showed the following balances: Cash $3,120, Accounts Receivable $1,170, Supplies $390, Equipment $3,900, Accounts Payable $3,200, Common Stock $2,730, and Retained Earnings $2,650. During August, the following transactions occurred. Aug. 3 Collected $940 of accounts receivable due from customers. 5 Received $1.010 cash for issuing common stock to new investors. 6 Pald $2.110 cash on accounts payable. 7 Performed legal services of $5,070, of which $2,340 was collected in cash and the remainder was due on account. 12 Purchased additional equipment for $940, paying $310 in cash and the balance on account 14 Paid salaries $2,730, rent $700, and advertising expenses $215 for the month of August. 18 Collected the balance for the services performed on August 7. 20 Pald cash dividend of $390 to stockholders 24 Billed a client $780 for legal services performed. 26 Received $1,560 from Laurentian Bank; the money was borrowed on a bank note payable that is due in 6 months. 27 Agreed to perform legal services for a client in September for $3.510. The client will pay the amount owing after the services have been performed 28 Received the utility bill for the month of August in the amount of $215; it is not due until September 15. 31 Pald income tax for the month $390. (a)

Answer 1

Collumber Legal Services Inc.
Adjusted Trial Balance
Aug 31 2020
Account Title	Debit	Credit
Account Receivables	1010
Cash	4855
Equipment	4840
Supplies	390
Account Payables		1935
Notes Payable		1560
Common Stock		3740
Retained Earnings		2650
Dividends	390
Service Revenue		5850
Income tax Expense	390
Rent Expense	700
Salaries Expense	2730
Advertising Expense	215
Utilities Expenses	215
Total	15735	15735