Delivery expense advertising expense utilities expense

Question

Transaction Analysis and Trial Balance

Pam Brown owns Art Graphics, a firm providing designs for advertisers and market analysts. On July 1, the business's general ledger showed the following normal account balances:

Cash	$6,800	Accounts Payable	$2,100
Accounts Receivable	9,800	Notes Payable	3,300
Common Stock	2,000
Retained Earnings	9,200
Total Assets	$16,600	Total Liabilities and Stockholders' Equity	$16,600

The following transactions occurred during the month of July:

July	1	Paid July rent, $510.
2	Collected $7,100 on account from customers.
3	Paid $1,800 installment due on the $3,300 noninterest-bearing note payable.
4	Billed customers for design services rendered on account, $16,550.
5	Rendered design services and collected from cash customers, $1,200.
6	Paid $1,400 to creditors on account.
7	Collected $12,750 on account from customers.
8	Paid a delivery service for delivery of graphics to commercial firms, $650.
9	Paid July salaries, $4,600.
10	Received invoice for July advertising expense, to be paid in August, $600.
11	Paid utilities for July, $250.
12	Paid stockholders a dividend of $2,000 cash.
13	Received invoice for supplies used in July, to be paid in August, $2,260.
14	Purchased computer for $6,300 cash to be used in business starting next month.

Required:

a. Set up accounts for the general ledger with July 1 balances and enter the beginning balances. Also provide the following accounts: Equipment; Service Fees Earned; Rent Expense; Salaries Expense; Delivery Expense; Advertising Expense; Utilities Expense; Supplies Expense; and Dividends. Prepare journal entries and record the listed transactions in the appropriate T-accounts.