Reference no: EM132631909

Question - On July 31, 2022, the general ledger of Blossom Legal Services Inc. showed the following balances: Cash $4,800, Accounts Receivable $1,800, Supplies $600, Equipment $6,000, Accounts Payable $4,920, Common Stock $4,200, and Retained Earnings $4,080. During August, the following transactions occurred.

Aug. 3 Collected $1,440 of accounts receivable due from customers.

Aug. 5 Received $1,560 cash for issuing common stock to new investors.

Aug. 6 Paid $3,240 cash on accounts payable.

Aug. 7 Performed legal services of $7,800, of which $3,600 was collected in cash and the remainder was due on account.

Aug. 12 Purchased additional equipment for $1,440, paying $480 in cash and the balance on account.

Aug. 14 Paid salaries $4,200, rent $1,080, and advertising expenses $330 for the month of August.

Aug. 18 Collected the balance for the services performed on August 7.

Aug. 20 Paid cash dividend of $600 to stockholders.

Aug. 24 Billed a client $1,200 for legal services performed.

Aug. 26 Received $2,400 from Laurentian Bank; the money was borrowed on a bank note payable that is due in 6 months.

Aug. 27 Agreed to perform legal services for a client in September for $5,400. The client will pay the amount owing after the services have been performed.

Aug. 28 Received the utility bill for the month of August in the amount of $330; it is not due until September 15.

Aug. 31 Paid income tax for the month $600.

Required - Post the August journal entries to the ledger.