(Learning Objective 2, 3, 4: Journalizing transactions, posting, and preparing and using a trial balance) During the first month of operations, Double R Heating and Air Conditioning, Inc., completed the following transactions:

Jan. 2	Double R received $30,000 cash and issued common stock to the stockholders.
3	Purchased supplies, $1,000, and equipment, $2,600, on account.
4	Performed service for a customer and received cash, $1,500.
7	Paid cash to acquire land, $22,000.
11	Performed service for a customer and billed the customer, $800.
16	Paid for the equipment purchased January 3 on account.
17	Paid the telephone bill, $100.
18	Received partial payment from customer on account, $500.
22	Paid the water and electricity bills, $400.
29	Received $1,800 cash for servicing the heating unit of a customer.
31	Paid employee salary, $1,300.
31	Declared and paid dividends of $2,200. We expect to collect within 1 month.

Required

Set up the following T-accounts: Cash, Accounts Receivable, Supplies, Equipment, Land, Accounts Payable, Common Stock, Dividends, Service Revenue, Salary Expense, and Utilities Expense.

1. Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required.

2. Post the transactions to the T-accounts, using transaction dates as posting references. Label the ending balance of each account Bal., as shown in the chapter.

3. Prepare the trial balance of Double R Heating and Air Conditioning, Inc., at January 31 of the current year.

4. The manager asks you how much in total resources the business has to work with, how much it owes, and whether January was profitable (and by how much).