Reference no: EM13575260

John Smith established John's Antique Appraisals Company and completed the following transactions during July, the first month of operations.

1. Opened a business bank account with a deposit of $25,000 in exchange for capital stock.
2. Purchased a car for use in the business, paid $4,000 down (from the business account) and signed a note for $20,000.
3. Paid $800 monthly rent on office.
4. Signed a business cell phone plan. Paid $50 for the first month.
5. Purchased $980 of office supplies on account.
6. Received $2,800 in cash from customers for appraisals completed.
7. Paid half of the office supplies bill from (e).
8. Paid office salaries of $2,400.
9. Billed customers for $900 of appraisal performed.
10. Paid dividends of $250.

REQUIRED:

Part 1:Prepare journal entries for the items above. Journal entry explanations may be omitted. (Leave a blank row between transactions.) Use the following accounts:

	101	Cash		310	Capital Stock
	105	Accounts Receivable		370	Dividends
	110	Office Supplies		410	Fees Earned
	120	Automobile		510	Salaries Expense
	201	Accounts Payable		520	Phone Expense
	220	Notes Payable		530	Rent Expense

Part 2: Prepare T accounts for the accounts listed in part 1. Post the journal entries to the T accounts. Label each entry with the letter for the transaction item. When the postings are complete, calculate the balance for each T account.

Part 3: Prepare a trial balance as of the end of July.