Question

*Accounting Cycle Review Problem 0-7A

On July 31, 2017, the general ledger of Windsor, Inc. showed the following balances: Cash $3,760, Accounts Receivable $1,410, Supplies $470, Equipment $4,700, Accounts Payable $3,850, Common Stock $3,290, and Retained Earnings $3,200. During August, the following transactions occurred.

Aug. 3 Collected $1,130 of accounts receivable due from customers.

5 Received $1,220 cash for issuing common stock to new investors.

6 Paid $2,540 cash on accounts payable.

7 Performed legal services of $6,110, of which $2,820 was collected in cash and the remainder was due on account.

12 Purchased additional equipment for $1,130, paying $380 in cash and the balance on account.

14 Paid salaries $3,290, rent $850, and advertising expenses $260 for the month of August.

18 Collected the balance for the services performed on August 7.

20 Paid dividends of $470 to stockholders.

24 Billed a client $940 for legal services performed.

26 Received $1,880 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 $4,230. 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 $260; it is not due until September 15.

31 Paid income tax for the month $470.

Using T-accounts, enter the beginning balances to the ledger.

Cash

Accounts Receivable

Supplies

Equipment

Accounts Payable

Common Stock

Retained Earnings

Journalize the August transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1

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