The following events apply to Complete Business Service in 2014, its first year of operations.

1. Received $30,000 cash from the issue of common stock.

2. Earned $25,000 of service revenue on account.

3. Incurred $10,000 of operating expenses on account.

4. Received $20,000 cash for performing services.

5. Paid $8,000 cash to purchase land.

6. Collected $22,000 of cash from accounts receivable.

7. Received a $6,000 cash advance for services to be provided in the future.

8. Purchased $900 of supplies on account.

9. Made a $7,500 payment on accounts payable.

10. Paid a $5,000 cash dividend to the stockholders.

11. Recognized $500 of supplies expense.

12. Recognized $5,000 of revenue for services provided to the customer in Event 7.

Required

a. Record the events in the general journal.

b. Post the events to T-accounts and determine the ending account balances.

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