Problem

Recording events in the general journal, posting to T-accounts, and preparing a trial bala...

Recording events in the general journal, posting to T-accounts, and preparing a trial balance

The following events apply to Electronics Services Inc. in its first year of operation.

1.    Acquired $80,000 cash from the issue of common stock.

2.    Earned $56,000 of service revenue on account.

3.    Incurred $30,400 of operating expenses on account.

4.    Collected $52,800 cash from accounts receivable.

5.    Made a $27,200 payment on accounts payable.

6.    Paid a $4,000 cash dividend to the stockholders.

7.    Received a $14,200 cash advance for services to be provided in the future.

8.    Purchased $3,200 of supplies on account. 

9.    Recognized $4,800 of revenue for services provided to the customer in Event 7.

10.   Recognized $2,400 of supplies expense.

11.   Recorded $3,200 of accrued salaries expense.

12.   Recognized $900 of accrued interest revenue.

Required

a. Record the events in T-accounts and determine the ending account balances.

b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

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