Question

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 $1,180 of accounts receivable due from customers.
5		Received $1,270 cash for issuing common stock to new investors.
6		Paid $2,650 cash on accounts payable.
7		Performed legal services of $6,370, of which $2,940 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.

28 Received the Utility BILI TUF UT TIUNILI UI AUGUSL li lile MIUNIL UI $220, IL IS TIUL UU UNUI September 15 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.) Debit Credit Date Aug. 3 Account Titles and Explanation Cash Accounts Receivable Aug. 5 Cash Common Stock Aug. 6 Accounts Receivable Cash Cash Aug. 7 Accounts Receivable Service Revenue Aug. 12 Equipment Cash

Answer 1

Journal Entry
Date	Accounts & Explanations	Debit	Credit
Aug,3	Cash	1180
	Accounts Receivable		1180
	(To Receive Cash from Customer)
Aug,5	Cash	1270
	Common Stock		1270
	(To Issue Common stock)
Aug,6	Account Payable	2650
	Cash		2650
	(To pay on account payable)
Aug,7	Cash	2940
	Accounts Receivable	3430
	Service Revenue		6370
	(To Receive Cash from Customer and on account for legal service performed)
Aug,12	Equipment	1180
	Cash		390
	Account Payable		790
	(To Purchase Additional Equipment on cash and on account)
Aug,14	Salaries Expenses	3430
	Rent Expenses	880
	Advertising Expenses	270
	Cash		4580
	(To Pay For Expenses)
Aug,18	Cash	3430
	Accounts Receivable		3430
	(To Receive Remaining Cash for Performance on Dt.Aug,7)
Aug,20	Dividend	490
	Cash		490
	(To pay dividend for cash)
Aug,24	Accounts Receivable	980
	Service Revenue		980
	(To Make billed for providing legal Services)
Aug,26	Cash	1960
	Notes Payable		1960
	(To borrow money from Bank due after 6 months)
Aug,27	No Entry
Aug,28	Utility Expenses	270
	Utility Expenses payable		270
	(To be paid for utility expenses for august month due on Sep 15)
Aug,31	Income Expense
	Cash
	(To pay for Income Tax)

Cash A/c
July,31	3920	Aug,6	2650
Aug,3	1180	Aug,12	390
Aug,5	1270	Aug,14	4580
Aug,7	2940	Aug,20	490
Aug,18	3430	Aug,31	490
Aug.26	1960	Aug,31 Bal.	6100
	14700		14700
Accounts Receivable
July,31	1470	Aug,3	1180
Aug,7	3430	Aug,18	3430
Aug,24	980	Aug,31 Bal.	1270
	5880		5880
Supplies
July,31	1470	Aug,31 Bal.	1470
	1470		1470
Equipment
July,31	4900
Aug,12	1180	Aug,31 Bal.	6080
	6080		6080
Accounts Payable
Aug,6	2650	July,31	4020
Aug,31 Bal.	2160	Aug,12	790
			4810
Notes Payable
Aug,26	1960	Aug,31 Bal.	1960
	1960		1960
Common Stock
		July,31	3430
Aug,31 Bal.	4700	Aug,5	1270
	4700		4700
Retained Earnings
Aug,31 Bal.	3330	Aug,31 Bal.	3330
	3330		3330
Dividend
Aug,31	490	Aug,20	490
	490		490
Service Revenue
		Aug,7	6370
Aug,31	7350	Aug,24	980
	7350		7350
Salaries & Wages Expense
Aug,31	3430	Aug,14	3430
	3430		3430
Rent Expense
Aug,31	880	Aug,14	880
	880		880
Advertising Expense
Aug,31 .	270	Aug,14	270
	270		270
Utilities Expense
Aug,28	270	Sep,15	270
	270		270
Income Tax Expense
Aug,31	490	Aug,31	490
	490		490

CRANE LEGAL SERVICES INC
Trial Balance (As on August 31)
Particulars	Debit	Credit
Cash	$     6,100.00
Accounts Receivable	$     1,270.00
Supplies	$         490.00
Equipment	$     6,080.00
Accounts Payable		$     2,160.00
Notes Payable		$     1,960.00
Common Stock		$     4,700.00
Retained Earnings		$     3,330.00
Dividend	$         490.00
Service Revenue		$     7,350.00
Salaries & Wages Expense	$     3,430.00
Rent Expense	$         880.00
Advertising Expense	$         270.00
Income Tax Expense	$         490.00
	$   19,500.00	$   19,500.00