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Schrand Aerobics, Inc., rents studio space (including a sound system) and specializes in offering aerobics classes. On January 1, 2015, its beginning account balances are as follows: Cash, $3,750; Accounts Receivable, $3,900; Equipment, $0; Notes Payable, $1,875; Accounts Payable, $750; Common Stock, $4,125; Retained Earnings, $900; Services Revenue, $0; Rent Expense, $0; Advertising Expense, $0; Wages Expense, $0; Utilities Expense, $0; Interest Expense, $0.

The following transactions occurred during January. (1) Paid $450 cash toward accounts payable. (2) Paid $2,700 cash for January rent. (3) Billed clients $8,625 for January classes. (4) Received $375 invoice from supplier for T-shirts given to January class members as an advertising promotion. (5) Collected $7,500 cash from clients previously billed for services rendered. (6) Paid $1,800 cash for employee wages. (7) Received $510 invoice for January utilities expense. (8) Paid $15 cash to bank as January interest on notes payable. (9) Declared and paid $675 cash dividend to stockholders. (10) Paid $3,000 cash on January 31 to purchase sound equipment to replace the rental system.

Required b. Set up T-accounts, including beginning balances, for each of the accounts used in part a. Post the journal entries to those T-accounts.

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