p3. Jennifer Polk opened a school for administrative skills called Polk Office Training, Inc., and completed the following transactions:
a. Contributed the following assets to the business in exchange for 13,600 shares of $1 par value common stock:
b. Found a location for her business and paid the first month’s rent, $260.
c. Paid for an advertisement announcing the opening of the school, $190.
d. Received applications from three students for a four-week secretarial program and two students for a ten-day keyboarding course. The students will be billed a total of $1,300.
e. Purchased supplies on credit, $330.
f. Billed the enrolled students, $1,740.
g. Purchased a second-hand computer, $480, and office equipment, $380, on credit.
h. Paid for the supplies purchased on credit in e, $330.
i. Paid cash to repair a broken computer, $40.
j. Received partial payment from students previously billed, $1,080.
k. Paid the utility bill for the current month, $90.
l. Paid an assistant one week’s salary, $440.
m. Declared and paid a dividend of $200.
1. Set up the following T accounts: Cash; Accounts Receivable; Supplies; Computers; Office Equipment; Accounts Payable; Common Stock; Dividends; Tuition Reve- nue; Salaries Expense; Utilities Expense; Rent Expense; Repair Expense; and Adver- tising Expense.
2. Record the transactions directly in the T accounts, using the transaction letter to identify each debit and credit.
3. Prepare a trial balance using today’s date.
4. BusIness applICatIon ▶ Examine transactions f and j. What were the revenues, and how much cash was received from the revenues? What business issues might you see arising from the differences in these numbers?