Bob Royce incorporated Royce Consulting, an accounting practice, on May 1, 2014. During the first month of operations, these events and transactions occurred.
May 1 Stockholders invested $100,000 cash in exchange for common stock of the Corporation.
2 Hired a secretary-receptionist at a salary of $2,500 per month.
3 Purchased $800 of supplies on account from Pickering Supply Company.
7 Paid office rent of $1,400 for the month.
11 Completed a tax assignment and billed client $2,500 for services performed.
12 Received $4,200 advance on a management consulting engagement.
17 Received cash of $3,300 for services completed for Woodman Co.
31 Paid secretary-receptionist $2,500 salary for the month.
31 Paid 50% of balance due Pickering Supply Company.
The company uses the following chart of accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.
(a) Journalize the transactions, including explanations.
(b) Post to the ledger T-accounts.
(c) Prepare a trial balance on May 31, 2014