Textbook Problem

T ACCOUNTS AND TRIAL BALANCE Sue Jantz started a business in August 20-- called Jantz Plumbing Service. Jantz hired a part-time college student as an administrative assistant. Jantz has decided to use the following accounts:

The following transacrions occurred during August:

1. (a) Invested cash in the business, $30,000.
2. (b) Purchased a used van for cash, $8,000.
3. (c) Purchased plumbing equipment on account, $4,000.
4. (d) Received cash for services rendered, $3,000.
5. (e) Paid cash on account owed from transaction (c), $1,000.
6. (f) Paid rent for the month, $700.
7. (g) Paid phone bill, $100.
8. (h) Earned revenue on account, $4,000.
9. (i) Purchased office supplies for cash, $300.
10. (j) Paid wages to student, $500.
11. (k) Purchased a one-year insurance policy, $800.
12. (l) Received cash from services performed in transaction (h), $3,000.
13. (m) Paid cash for advertising expense, $2,000.
14. (n) Purchased additional plumbing equipment for $2,000, paying $500 cash and spreading the remaining payments over the next six months.
15. (o) Earned revenue from services for the remainder of the month of $2,800: $1,100 in cash and $1,700 on account.
16. (p) Withdrew cash at the end of the month, $3,000.

REQUIRED

1. 1. Enter the transactions in T accounts, identifying each transaction with its responding letter.
2. 2. Foot and balance the accounts where necessary.
3. 3. Prepare a trial balance as of August 31, 20--.