On July 3 1 , 2 0 1 8 , the general ledger of Hills Legal Services Inc. showed these balances: Cash $ 4 , 0 0 0 ; Accounts Receivable $ 1 , 5 0 0 ; Supplies $ 5 0 0 ; Equipment $ 5 , 0 0 0 ; Accounts Payable $ 4 , 1 0 0 ; Common Shares $ 3 , 5 0 0 ; and Retained Earnings $ 3 , 4 0 0 . The below journal entries were prepared for August 2 0 1 8 . Prepare trial balance as of August 3 1 , 2 0 1 8 Aug Entries DR CR 2 cash 1 2 0 0 AR 1 2 0 0 3 cash 1 3 0 0 CS 1 3 0 0 6 AP 2 7 0 0 Cash 2 7 0 0 7 Cash 3 0 0 0 AR 3 5 0 0 Sales 6 5 0 0 1 3 Equipment 1 2 0 0 Cash 4 0 0 Payable 8 0 0 1 7 Salaries 3 5 0 0 Rent 9 0 0 Advertising 2 7 5 Cash 4 6 7 5 1 7 Cash 3 5 0 0 AR 3 5 0 0 2 0 RE 5 0 0 Cash 5 0 0 2 2 AR 1 0 0 0 Sales 1 0 0 0 2 4 Cash 2 0 0 0 Loan 2 0 0 0 2 7 No entry 2 8 Utility 2 7 5 Accounts payable 2 7 5 3 0 Income Tax 5 0 0 Cash 5 0 0