Beth Nelson started her practice as a design consultant on
Beth Nelson started her practice as a design consultant on November 1, 2015. During the first month of operations, the business completed the following transactions:
Nov. 1 Received $ 34,000 cash and issued common stock to Nelson.
4 Purchased office supplies, $ 500, and furniture, $ 1,900, on account.
6 Performed services for a law firm and received $ 1,200 cash.
7 Paid $ 25,000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to pay the $ 1,200 within one week.
14 Paid for the furniture purchased on November 4 on account.
15 Paid assistant’s semimonthly salary, $ 1,080.
17 Received cash on account, $ 500.
20 Prepared a design for a school on account, $ 800.
25 Received $ 1,800 cash for design services to be performed in December.
28 Received $ 2,200 cash for consulting with Plummer & Gordon.
29 Paid $ 2,400 cash for a 12-month insurance policy starting on December 1.
30 Paid assistant’s semimonthly salary, $ 1,080.
30 Paid monthly rent expense, $ 830.
30 Received a bill for utilities, $ 250. The bill will be paid next month.
30 Paid cash dividends of $ 2,700.

1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Land; Accounts Payable; Utilities Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense. Explanations are not required.
2. Open a T-account for each of the accounts.
3. Post the journal entries to the T-accounts, using transaction dates as posting ­references in the ledger accounts. Label the balance of each account Bal.
4. Prepare the trial balance of Beth Nelson, Designer, as of November 30, 2015.

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