On July 31.2017, the general ledger of Kingbird, Inc.showed the following balanc

Question

On July 31.2017, the general ledger of Kingbird, Inc.showed the following balances: Cash $4,800, Accounts Receivable $ 1,800, Supplies $ 600, Equipment $ 6.,00 Accounts Payable $ 4,920, Common Stock $ 4,.200, and Retained Earnings $4,080. During August, the following transactions occurred. Aug. 3 Collected $ 1.440 of accounts receivable due from customers. 5 Received $ 1,560 cash for issuing common stock to new investors 6 Paid $ 3,240 cash on accounts payable. 7 Performed legal services of $ 7.800, of which $ 3,600 was collected in cash and the remainder was due on account 12 Purchased additional equipment for $ 1,440,paying $ 480 in cash and the balance on account. 14 Paid salaries $ 4,200, rent $ 1,080, and advertising expenses $ 330 for the month of August. 18 Collected the balance for the services performed on August 7, 20 Paid dividends of $ 600 to stockholders 24 Billed a client $1,200 for legal services performed. 6 Received $ 2,400 from Laurentian Bank; the money was borrowed on a bank note payable that is due in 6 months 27 Agr eed to perform legal services for a client in September for $ 5,400. 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 $ 330, it is not due until September 15. 31 Paid income tax for the month $ 600

Explanation / Answer

Aug 3

Cash Dr 1440

Accounts Receivable Cr 1440

Aug 5

Cash Dr 1560

Common Stock Cr 1560

Aug 6

Account payble Dr 3240

Cash Cr 3240

Aug 7

Cash Dr 3600

Account receivable Dr 4200

Service revenue Cr 7800

Aug 12

Equipment Account Dr 1440

Cash Cr 480

Account Payble Cr 960

Aug 14

Salaries Dr 4200

Rent Dr 1080

Advertising exp Dr 330

Cash Cr 5610

Aug 18

Cash Dr 4200

Account Receivable Cr 4200

Aug 20

Retained earning Dr 600

Cash Cr 600

Aug 24

Accounts receivable Dr 1200

Service revenue Cr 1200

Aug 26

Cash Dr 2400

Note payble Cr 2400

Aug 27

No Entry

Aug 28

Utility Expense Dr 330

Utility expense payable Cr 330

Aug 31

Income tax Dr 600

Cash Cr 600

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