P 2–5

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

5

Collected $2,000 fees in cash from a client for work performed today (recorded as Fees Earned)

7

Billed $5,000 fees to clients for services performed to date (recorded as fees earned)

9

Paid $250 for supplies used to date

12

Purchased $500 of supplies on credit (recorded as unused supplies)

15

Collected $1,000 of the amount billed on 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 on August 12

25

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

28

Called clients for payment of the balance owing from August 7

29

Billed $6,000 of fees to clients for services performed to date (recorded as fees earned)

31

Transferred the amount of August’s truck insurance ($50) to insurance expense

31

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