Chapter 2, Problem 2.17E

Use the following information to answer Exercises E2-16 and E2-17.

The following transactions occurred for London Engineering:

Jul. 2	Received $12,000 contribution from Brett London in exchange for common stock.
4	Paid utilities expense of $410.
5	Purchased equipment on account, $2,200.
10	Performed services for a client on account, $2,800.
12	Borrowed $7,500 cash, signing a notes payable .
19	Cash dividends of $750 were paid to stockholders.
21	Purchased office supplies for $860 and paid cash.
27	Paid the liability from July 5.

Posting journal entries to T-accounts

Requirements

1. Open the following T-accounts for London Engineering: Cash; Accounts Receivable; Office Supplies; Equipment; Accounts Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Utilities Expense.

2. Post the journal entries to the T-accounts. Also transfer t he dares to the T-accounts.

3. Compute the July 31 balance for each account.