P 1–2

Aug.

1

Issued share capital for $3,000 cash

1

Borrowed $10,000 cash from the bank

1

Paid $8,000 cash for a used truck

4

Paid $600 for a one–year truck insurance policy effective August 1 (recorded as prepaid expense since it will benefit more than one month)

5

Collected $2,000 fees from a client for work to be performed at a later date

7

Billed $5,000 fees to clients for services performed to date

9

Paid $250 for supplies used to date

12

Purchased $500 supplies on credit (record supplies as an asset)

15

Collected $1,000 of the amount billed August 7

16

Paid $200 for advertizing in The News during the first two weeks of August

20

Paid half of the amount owing for the supplies purchased August 12

25

Paid the following expenses: rent for August, $350; salaries, $2,150; telephone, $50; truck operating, $250

28

Called clients for payment of the balances owing from August 7

29

Billed $6,000 fees to clients for services performed to date, including $1,500 related to cash received August 5

31

Transferred $50 of August’s prepaid expenses to insurance expense

31

Counted $100 of supplies still on hand (recorded the amount used as an expense).