On July 31, 2022, the general ledger of Cullumber Legal Services Inc. showed the following balances:
Cash $3,120,
Accounts Receivable $1,170,
Supplies $390,
Equipment $3,900,
Accounts Payable $3,200,
Common Stock $2,730, and Retained Earnings $2,650.
During August, the following transactions occurred.
Aug. 3 Collected $940 of accounts receivable due from customers.
5 Received $1,010 cash for issuing common stock to new investors.
6 Paid $2,110 cash on accounts payable.
7 Performed legal services of $5,070, of which $2,340 was collected in cash and the remainder was due on account.
12 Purchased additional equipment for $940, paying $310 in cash and the balance on account.
14 Paid salaries $2,730, rent $700, and advertising expenses $215 for the month of August.
18 Collected the balance for the services performed on August 7.
20 Paid cash dividend of $390 to stockholders.
24 Billed a client $780 for legal services performed.
26 Received $1,560 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 $3,510. 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 $215; it is not due until September 15.
31 Paid income tax for the month $390.
Required:
a. Using T-accounts enter the beginning balances to the ledger.
b. Journalize the August transactions
c. Post the August journal entries to he ledger.