Please answer a and b. Answers only. ### Business Accounting: T-Accounts and Trial Balance#### Overview of Transactions for Equipment Services Inc.The following events occurred for Equipment Services Inc. during its first year of operation:1. **Acquired $60,000 cash** from the issue of common stock.2. **Received an $8,200 cash advance** for services to be provided in the future.3. **Purchased $2,000 of supplies** on account.4. **Earned $36,000 of service revenue** on account.5. **Incurred $16,100 of operating expenses** on account.6. **Collected $28,500 cash** from accounts receivable.7. **Made a $15,100 payment** on accounts payable.8. **Paid a $2,000 cash dividend** to the stockholders.9. **Recognized $1,600 of supplies expense**.10. **Recorded $3,100 of accrued salaries expense**.11. **Recognized $3,100 of revenue** for services provided to the customer in Event 2.#### Required Actionsa. **Record the Events in T-Accounts** and determine the ending account balances.b. **Test the Equality of Debit and Credit Balances** of the T-Accounts by preparing a trial balance.#### Recording in T-AccountsEach transaction should be recorded as follows to determine their impact on different accounts (assets, liabilities, equity, revenue, expenses).- **Common Stock Account**: Debit: Cash $60,000 Credit: Common Stock $60,000- **Cash Account**: Debit: Transactions increasing cash Credit: Transactions decreasing cash- **Accounts Receivable**: Debit: Earned revenue not yet received Credit: Payments received from receivables- **Supplies Account**: Debit: Supplies purchased Credit: Supplies used/expenses- **Accounts Payable**: Debit: Payments made to creditors Credit: Purchases made on account- **Salaries Payable**: Debit: Payment of salaries Credit: Accrued salaries expense- **Service Revenue**: Credit: Earned revenue- **Expenses**: Debit: Incurred expenses- **Dividends**: Debit: Cash paid to stockholders#### Preparing a Trial BalanceAfter recording **Recording Transactions in T-Accounts****Objective**: To record the events in T-accounts and determine the ending account balances.### T-Accounts OverviewT-accounts are used to represent the transactions affecting particular accounts in the general ledger in a visually segmented manner. Each T-account consists of two sides: the left side represents debits and the right side represents credits.### Required A & B#### Cash| Beg. Bal | Debit (Left) | Credit (Right) | Ending Bal ||----------|--------------|----------------|------------|| | | | |#### Accounts Receivable| Beg. Bal | Debit (Left) | Credit (Right) | Ending Bal ||----------|--------------|----------------|------------|| | | | |#### Supplies| Beg. Bal | Debit (Left) | Credit (Right) | Ending Bal ||----------|--------------|----------------|------------|| | | | |#### Accounts Payable| Beg. Bal | Debit (Left) | Credit (Right) | Ending Bal ||----------|--------------|----------------|------------|| | | | |#### Salaries Payable| Beg. Bal | Debit (Left) | Credit (Right) | Ending Bal ||----------|--------------|----------------|------------|| | | | |#### Unearned Revenue| Beg. Bal | Debit (Left) | Credit (Right) | Ending Bal ||----------|--------------|----------------|------------|| | | | |### Explanation of the T-Account Layout1. **Labeling**: Each T-account is labeled with the account title at the top (e.g., Cash, Accounts Receivable, Supplies, etc.). 2. **Initial Balances**: The beginning balances (Beg. Bal) for each account are listed on the debit (left) or credit (right) side depending on the normal balance of the account.3. **Transactions**: Individual transactions are recorded as debits or credits in the respective columns. 4. **Ending Balances**: After all transactions for a period are recorded, the ending balance (End. Bal) is calculated by summing the debits and credits and determining the net effect on the account.### PurposeRecording transactions in T-accounts provides a systematic method for tracking how each transaction affects the balance of specific accounts

The question is based on the concept of Business Accounting.

The following events apply to Equipment Services Inc. in its first year of operation: 1. Acquired $60,000 cash from the issue of common stock. 2. Received an $8,200 cash advance for services to be provided in the future. 3. Purchased $2,000 of supplies on account. 4. Earned $36,000 of service revenue on account. 5. Incurred $16,100 of operating expenses on account. 6. Collected $28,500 cash from accounts receivable. 7. Made a $15,100 payment on accounts payable. 8. Paid a $2,000 cash dividend to the stockholders. 9. Recognized $1,600 of supplies expense. 0. Recorded $3,100 of accrued salaries expense. 11. Recognized $3,100 of revenue for services provided to the customer in Event 2. 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.