Munro Consulting, Inc., completed the following transactions during November 2012, its first month of operations:
Nov 2 Sold $80,000 of common stock to Darryl Munro to start the consulting practice.
3 Paid monthly office rent, $1,700.
6 Paid cash for a new computer, $1,800.
8 Purchased office furniture on account, $1,200.
11 Purchased supplies on account, $400.
19 Performed consulting service for a client on account, $2,600.
20 Paid utility expenses, $500.
28 Performed service for a client and received cash for the full amount of $1,600.
1. Open, or set up, T-accounts in the ledger for the following accounts: Cash, Accounts Receivable; Supplies; Equipment; Furniture; Accounts Payable; Common Stock; Service Revenue; Rent Expense; Utilities Expense.
2. Record transactions in the journal. Explanations are not required.
3. Post the journal entries to the T-accounts, identify all items by date. Calculate the ending balance in each account.
4. Prepare a trial balance at November 30, 201 2.
5. Prepare the income statement, statement of retained earnings, and balance sheet.