Reference no: EM132434460

Problem: Peterson Accounting Company has the following account balances: Cash, £5,000; Accounts Receivable, £2,000; Prepaid Rent £1,500; Supplies, £850; Equipment, £6,000; Trucks, £15,000; Accounts Payable, £2,500; Common Stock, £20,000; Retained Earnings £7,850. Business transactions during December are presented as follows:

• Company received cash from clients for services, £4,500
• Peterson paid to creditors £500,
• Paid office rent for the month of December, £750,
• Company billed client for accounting services on account, £5,200
• Supplies were purchased on account, £650,
• Company received cash from clients billed previously, £6,000
• Peterson received an invoice for office equipment repair services from Office Extra for December (the invoice will be paid next month), £850,
• Peterson paid monthly salaries, £2,700,
• Utilities expense were paid, £280,
• Miscellaneous expenses were paid, £350,
• Dividends were paid, £550.

Required:

1. Journal Entries

2. Ledgers Accounts

3. Trial Balance