McDonald Consulting, Inc. completed the following transactions during December 2013, its first month of operations:

Dec 2 Sold $10,000 of shares to Dan McDonald to start the consulting practice.

3 Paid monthly office rent, $800.

6 Paid cash for a new computer, $1,600.

8 Purchased office furniture on account, $2,100.

11 Purchased supplies on account, $200.

19 Performed consulting service for a client on account, $900.

20 Paid utility expenses, $300.

28 Performed service for a client and received cash for the full amount of $1,100.

Requirements

1. Open, or set up, T-accounts in the ledger: Cash, Accounts Receivable; Supplies; Equipment; Furniture; Accounts Payable; Common Shares; Service Revenue; Rent Expense; Utilities Expense.

2. Record transactions in the journal. Explanations are not required.

3. Post the transactions to the T-accounts identify all items by date. Calculate the balance in each account.

4. Prepare a trial balance at December 31, 2013.

5. Prepare the income statement, statement of changes in equity, and statement of financial position.