Chapter 2, Problem 2.61AP

LO 4,5

(Learning Objectives 4, 5: Journalize and post transactions; prepare a trial balance) During the first month of operations, Cloutier Services, Inc., completed the following transactions:

Aug	2	Cloutier Services received $69,000 cash and issued common stock to the stockholders.
	3	Purchased supplies, $500, and equipment, $11,800, on account.
	4	Performed services for a customer and received cash, $5,600.
	7	Paid cash to acquire land, $33,000.
	11	Performed services for a customer and billed the customer, $3,300. Cloutier expects to collect within one month.
	16	Paid for the equipment purchased August 3 on account.
	17	Paid for newspaper advertising, $560.
	18	Received partial payment from customer on account, $ 1,200.
	22	Received and paid the water and electricity bills, $390.
	29	Received $3,000 cash for servicing the heating unit of a customer.
	31	Paid employee salaries, $2,500.
	31	Declared and paid dividends of $2,000.

Requirements

1. 1. Record each transaction in the journal. Be sure to record the date in each entry. Explanations are not required.
2. 2. Post the transactions to the T-accounts, using transaction dates as posting references. Determine the ending balance in each account.
3. 3. Prepare the trial balance of Cloutier Services, Inc., at August 31 of the current year.
4. 4. Michael Cloutier, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether August was profitable (and by how much).