The Precision Computer Centre created its chart of accounts as follows:

You will use this chart of accounts to complete the Continuing Problem.
The following problem continues from Chapter 1. The balances as of May 31 have been brought forward in your Study Guide with Working Papers on pages 2-24 to 2-25. Additional transactions in June were:
(k) Received the phone bill for the month of May, $155
(l) Paid $150 (cheque No. 205) for insurance for the month
(m) Paid $200 (cheque No. 206) of the amount due from transaction (d) in Chapter 1
(n) Paid advertising expense for the month, $1,400 (cheque No. 207)
(o) Billed a client (Jeannine Sparks) for services rendered, $850
(p) Collected $900 for services rendered-a cash sale
(q) Paid the electric bill in full for the month of May (cheque No. 208-transaction (h), Chapter 1), $85
(r) Paid cash (cheque No. 209) for $50 in stamps (s)Purchased $200 worth of supplies from Computer Connection on account
Assignment
1. Set up T accounts in a ledger.
2. Record the transactions (k) through (s) in the appropriate T accounts.
3. Foot the T accounts where appropriate.
4. Prepare a trial balance at the end of June 2013.
5. From the trial balance, prepare an income statement, a statement of owner's equity, and a balance sheet  for the two months ending June 30, 2013.

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Chart of Accounts as of May 1, 2013 Revenue 4000 Service Revenue Assets 1000 Cash 1020 Accounts Receivable 1025 Prepaid Rent 1030 Supplies 1080 Computer Shop Equipment 1090 Office Equipment Liabilities 2000 Accounts Payable Expenses 5010 Advertising Expense 5020 Rent Expense 5030 Utilities Expense 5040 Phone Expense 5050 Supplies Expense 5060 Insurance Expense 5070 Postage Expense Owner's Equity 3000 T. Freedman, Capital 3010 T. Freedman, withdrawals