5. The Woody Shore Company opened their doors to the business on August 31, 2014. The company incurred the following transactions during August 2014.

August 1 The owners deposited $87,000 into the business

August 2 Purchased supplies on credit, total $800.

August 2 Company purchased a 12 month insurance policy for their business $3,600

August 3 Paid rent for their office $2,800

August 5 Purchased equipment for $15,000 paid cash of $3,000 and signed a note with the bank for the remaining balance.

August 9 Completed service for customers and issued invoices, $7,500

August 14 Automobile expense for the company was $825

August 15 Received cash from customer for services provided $2,800

August 18 Paid monthly salary for the employees $4,000

August 22 Paid first installment for note on August 5, 450

August 25 Paid $300 on amount due from August 2

August 30 Customers from August 9 sent you cash for $3,000

August 31 Owners withdrew $2,100 from the company

Required:

a. Prepare the journal entries for the above transaction using the accounts in the Chart of Accounts; Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accounts Payable, Notes Payable, Capital, Owners Withdrawal, Insurance Expense, Rent Expense, Automobile Expense, Salary Expense .

b. Create T accounts for all of the accounts and post the journal entries into the proper accounts.

c. Compute the ending balances for each T Account.

d. Prepare a Trial Balance as of August 31.

e. Prepare the Income Statement, Statement of Owners Equity and the Classified Balance Sheet for the month of August 2013.