4 Problem 2: Journal, Ledger & Trial Balance (55 marks) During the first month of operations in 2021, Simmons Air Conditioning, Inc. completed the following transactions: Jan. 2 Simmons Air Conditioning Inc. received $40,000 cash and issued ordinary shares to the shareholders. 2 Hired an administrative assistant with starting salary of $1,200 per month 3 Purchased supplies $300 and equipment $3,500 on account. Performed service for a customer and received cash $2,000. 7 Paid $10,000 and signed a $20,000 note payable to purchase land for an office site. 11 Performed services to various customers on account $5,000. 16 Paid for the equipment purchased on January 3 on account. 17 Paid utility bills for the month $250. 18 Received partial payment from customer on account $525. 22 Paid rent for the month $1,500. 29 Received cash in advance $1,600 from a customer for service to be rendered next month. 31 Paid employees' salaries for the month $2,000. 31 Declared and paid dividends $1,200. CHART OF ACCOUNTS 11 Cash 31 Share Capital - Ordinary 12 Accounts Receivable 32 Dividends 13 Supplies 41 Service Revenue 16 Land 51 Salaries Expense 17 Equipment 52 Utilities Expense 21 Accounts Payable 53 Rent Expense 22 Notes Payable 23 Unearned Service Revenue Instructions: (Use the provided answer sheets) 1. Journalize the above transactions. Explanation and posting reference are required. 2. Post to the ledger accounts. Posting reference is required. 3. Prepare the trial balance for the month ended January 31, 2021