Question: McDonald Consulting Inc completed the following transactions during December 2013

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.
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.

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  • CreatedJuly 08, 2015
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