At the beginning of June 2020, Brett Wilson created a moving company called Frog Box Company. The company had the following transactions during July, its second month of operations:

Required

1. Prepare journal entries to record the transactions. Use page 1 for the journal.

2. Set up the following general ledger accounts (use the balance column format or T-accounts), entering the balances brought forward from June 30, 2020: Cash (101) $75,000; Accounts Receivable (106) $950; Prepaid Insurance (128) $275; Trucks (153) $20,800; Office Equipment (163) $1,200; Building (173) $-0-; Land (183) $-0-; Accounts Payable (201) $725; Unearned Revenue (233) $-0-; Long-Term Notes Payable (251) $7,000; Brett Wilson, Capital (301) $83,825; Brett Wilson, Withdrawals (302) $600; Revenue (401) $8,400; Wages Expense (623) $780; Truck Rental Expense (645) $230; Advertising Expense (655) $75; and Repairs Expense (684) $40.

3. Post the entries to the general ledger accounts and enter the balance after each posting.

4. Prepare a trial balance as of the end of the month.

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Purchased office equipment for $9,000 and a truck for $56,000 by signing a long-term note payable. Purchased land for an office. The land was worth $124,000, which was paid with $40,800 cash and a long-term note payable for the balance. July Purchased a used portable building with $21,000 cash and moved it onto the land. Paid $9,600 cash for the premiums on two one-year insurance policies. Provided services to a client and collected $3,200 cash. Purchased additional office equipment for $6,500. Paid $700 cash and signed a long-term note payable for 12 the balance. 15 Completed $3,750 of services for a client. This amount is due within 30 days. Completed another hauling job for $9,200 on credit. 20 21 Received a bill for rent on a specialized hauling truck that was used to complete the job done on July 20. The $1,300 rent must be paid within 30 days. Collected $5,000 from the client described in the transaction on July 20. Paid $1,600 wages to an assistant. 22 23 24 Paid the account payable created in the transaction of July 21. 25 Paid $1,425 cash for some repairs to the truck. Wilson withdrew $3,875 in cash from the business for personal use. 26 Paid $1,600 wages to an assistant. 27 Paid $800 cash for advertising in the local newspaper during July. Received $1,400 from a client for services to be performed in August. 28 29