Question

On July 31, 2022, the general ledger of Ivanhoe Leon Services Inc. showed the following balances: Cash $4,160, Accounts Receivable $1,560, Supplies $520, Equipment $5,200, Accounts Payable $4,250, Common Stock $3,640, and Retained Earnings $3,540. During August, the following transactions occurred Aug 3 Collected $1,250 of accounts receivable due from customers S Received $1,350 cash for issuing common stock to new inwestors 6 Paid $2,810 cash on accounts payable 7 Performed legal services of 36,760, of which $3,120 was collected in cash and the remainder was due on account. 12 Purchased additional equipment for $1,250, paying $420 in cash and the balance on account 14 Paid salaries $3,640, rent $940, and advertising expenses $285 for the month of August, 18 Collected the balance for the services performed on August 7. 20 Paid cash dividend of $520 to stockholders 24 Billed a chent $1,040 for legal services performed 26 Received $2,080 from Laurentia , 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 $4,680. The client will pay the amount owing after the services 28 Recewed the utility bill for the month of August in the amount of $285; it is not due until September 15 31 Paid income tax for the month $520

Answer 1

Tolution Cr. Amich) opening Balances as on 31/7/22 Cash - $4160. Accounts Receivable $1560 Dr. Supplies - 4520 Dr. Equipment 5200 Dr. Accounts payable - $4260 cr. Common stock 3640 kr. Retained Earnings - $3540 cr. h Journal entries - Date de particulars Dr Amt (6) 318/22 Cash A/C - -- - Dr 1250 TO A/C Receirable (Being cash received) Cash Ale - Dr 1350 To common stock (Being cash received ) Accounts payable Alc... Dr 2810 To cash (Being cash paid to creditors) Cash Ale a re Dr 3120 of legal services 3640 J Cale Receivable) To Legal Services (Being legal services performed 1250 8/8/22 D 2810 Dr 6760 received part payment) Equipment A/e .. . Dr 1250 420 To cash A/L all To of Alc payable (Being equipment purchased & 830 part payment is made )

Dy Ant (4) Cid Ledger Date Antal 361 3/8/22 5/8/22 als 22 18/8/22 4865 18/8/22 Cash A/c .. 26lah- Dindand Journal entries (cont..) - Particulars 14/8/22 Salaries te - DU 3640 Rent We -.. Dr 940 ndrontising eup . ..Dr 285 To Cash / (Being cup paid for deg. math) Cash Ale ... Dr 3640 To / legal services 2016122 Eash Ale - ...Dr 520 To Dividend cachale do 418122 of legal services Al...... Dr 1040 to legal services Being billed for legal services) 2013/22 Cash-Me - Dr 2080 To the poo loan A/c/Notes in (Being borrowed from bank pagal ofs legal services A/ . Dr 3640 520 311760 داواد 2080 zulal 22/8/22 No Entry as the servics wone not yet performed but only agreed no Entry old 2818tes 31/8/22 i 520 Cash A/e Docometan _ .. Dr 520 To Income tant Cash Ale (Being income tan paid for the Utility / Dr 285 To of utility cup gale month g o od for the 28/8/22 12/8/22 12/8/22 01

Art og w ledger Accounts er 2 By Cquipment Mats By Salaries 420 3640 4865 Cash Ale at be To balance b/d 1160 elele Bunle payable 3/8/22 To Al Receivable 1250 12/8/22 5/8/22 To Comon stock 1350 14/8/25 7/8/22 To legal services 3120 tulalas e Rent 18/8/22 To / legal servi Tuleb (No Receivable) 3640 2610122 to loan nle 2080/ solela By Dividend lela By Income tan | 31/8/22 By bolanceold 15600 quo els By Adv cup 255 3640 520 520 6465 15600 20 040 31/7/22 7/8/22 zulala2 All Accounts Receivable n o To balanceb/d 1860/368122 By cach ot To legal services 3640 18/3/22 By Cash To legal services Voud is 31/8/22 By balancebld 1250 3640 080 1350 6240 6240 Supplies Alo Dr xila/22 To balance bld 520 31/6/22 By balance efd pod Ale 520 520 520 Whale to balance bla Equipment the 5200 420 1218122 To Cash 830 1218122 to the payable soulelor By balance bld Guso 6450 281

Accounts payable the 2810 sila By Abolanco b/d 12/8/22 By Equipment 2280 6/8/2, To cashA/ 12/8/ silel22 To balance cld i to tulg 22 70 LOGO Notes payable Alcool 141822 70 3110/22 To balance eff 2000 31/8/22 T 2010 Dr stoler To Cash 388/ (26/8/22 By Cash A/ 2000 2080 Common Stock Ale alala2 By balance bld 4890 4890 Dividend Ale 520/31/3/22 By Ardal 1350 stela By cashAle 3540 1350 8/8/27 To balanceold n a (i) in 4890 Dr 2018/2. To cash A/C Cash Accou- 520 520 ομο Dr Connie Ronnue Accou s celebs Top 22 TO PRINC Noher Como 7800 71862 TO cash do 3120 dlaTO Wc necavallo 3640 2u12/22 TO A Receivable loud Rota 7800 Salaries & Woge fup. d 3800 So sel Dy Ind iulalo To cash N e r 3640 3640 | 31/0/22 By PRIA/C 3640! Util 3640

UN Cr DX Rent tupense Ale 940 318122 By QE 1 Ale 940 260 14/8/22 To Karh 940 30 940 Dr 285 141822 To cach Ale ndr Grup Ale 285 ulgl 22 By P81 Ale 285 80 Incomo fan Ale 520/31/8/22 By PE1A/ 520 31/8/22 To cash 80 5201 520 285 Utility Ale 28/3/22 To of utility 285 3118122 By P&1 285 liv) Trial balance of Tranhoe legal services Inc. as on 31/8/22 Particulars Dra) । Cash Accounts Receimable 13520 Supplies 5200 640 Equipment Accounts payable Notes payable Common stock 6465 2280 2080 4890 Iruo Rotained earnings 520 7800 Dividend Servico Renance Salaries, Rent, androup. Income fan Utility 4865 520 285

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