Reference no: EM13914775

The following events apply to Computer Services Inc. in its first year of operation:

1. Acquired $40,000 cash from the issue of common stock. 

2. Earned $28,000 of service revenue on account. 

3. Incurred $15,200 of operating expenses on account. 

4. Collected $26,400 cash from accounts receivable. 

5. Made a $13,600 payment on accounts payable. 

6. Paid a $2,000 cash dividend to the stockholders. 

7. Received a $7,100 cash advance for services to be provided in the future. 

8. Purchased $1,600 of supplies on account. 

9. Recognized $2,400 of revenue for services provided to the customer in Event 7. 

10. Recognized $1,200 of supplies expense. 11. Recorded $1,600 of accrued salaries expense. 

12. Recognized $450 of accrued interest revenue.

Required: 

a. Record the events in T-accounts and determine the ending account balances. 

b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.