On July 31, 2022, the general ledger of Crane Legal Services Inc. showed the following balances: Cash $3,920, Accounts Receivable $1,470, Supplies $490, Equipment $4,900, Accounts Payable $4,020, Common Stock $3,430, and Retained Earnings $3,330. During August, the following transactions occurred.

Aug. 3		Collected $1,190 of accounts receivable due from customers.
5		Received $1,330 cash for issuing common stock to new investors.
6		Paid $2,670 cash on accounts payable.
7		Performed legal services of $6,550, of which $2,970 was collected in cash and the remainder was due on account.
12		Purchased additional equipment for $1,180, paying $390 in cash and the balance on account.
14		Paid salaries $3,430, rent $880, and advertising expenses $270 for the month of August.
18		Collected the balance for the services performed on August 7.
20		Paid cash dividend of $490 to stockholders.
24		Billed a client $980 for legal services performed.
26		Received $1,960 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 $4,410. 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 $270; it is not due until September 15.
31		Paid income tax for the month $490.

 

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31 Paid Income tax for the month $490. Using T-accounts, enter the beginning balances to the ledger. Cash Accounts Receivable Supplies Equipment Accounts Payable Common Stock Retained Earnings LINK TO TEXT Journalize the August transactions. (If no entry is required, select "No entry" for the account titles and enter journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Aug. 3 Cash Accounts Recelvable Aug. 5 Cash Common Stock Aug. 6 Accounts Receivable Cash Aug. 7 : Cash Accounts Receivable Service Revenue Aug. 12 Equipment Cash 31 Paid Income tax for the month $490. Using T-accounts, enter the beginning balances to the ledger. Cash Accounts Receivable Supplies Equipment Accounts Payable Common Stock Retained Earnings LINK TO TEXT Journalize the August transactions. (If no entry is required, select "No entry" for the account titles and enter journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Aug. 3 Cash Accounts Recelvable Aug. 5 Cash Common Stock Aug. 6 Accounts Receivable Cash Aug. 7 : Cash Accounts Receivable Service Revenue Aug. 12 Equipment Cash

Answer rating: 100% (QA)

Date Accounts explanation Debit Credit Aug 3 Cash 1190 Accounts receivable 1190 To receive cash from customers Aug 5 Cash 1330 Common stock 1330 To is... View the full answer