The following ransactions occured for London Eningeering:
- July 2 Paid utilities expense for $400
- 5 Purchased equipment on account, $2,100
- 10 Performed service for a client on account, $2,000
- 12 Borrowed $7,000 cash, signing a note payable
- 19 Sold for $29,000 land that had cost the same amount
- 21 Purchased supplies for $800 and paid cash
- 27 Paid the liability from July 5
1. Open the following T-accounts with their July 1 balances: Cash, debit balance $4,000; Accounts receivable $0; Equipment $0; Land, debit balance $29,000; Supplies $0; Accounts payable $0; Notes payable $0; London, capital, credit balance $33,000; Service revenue $0; Utilities expense $0.
2. Post the transactions of the above table to the t-accounts. Use the dates as polting references. Start with July 2
3. Compare the July 31, 2012, balance for each account, and prove that total debits equal total credits by preparing a trial balance.