Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture, Accounts Payable, Common Stock, Dividends, Service Revenue, Salary Expense, and Rent Expense.
Record the following transactions directly in the T-accounts without using a journal. Use the letters to identify the transactions.
a. Linda Conway opened a law firm by investing $11,000 cash and office furniture valued at $9,100. Organized as a professional corporation, the business issued common stock to Conway.
b. Paid monthly rent of $1,200.
c. Purchased office supplies on account, $700.
d. Paid employee salaries of $2,200.
e. Paid $300 of the accounts payable created in Transaction c.
f. Performed legal service on account, $8,300.
g. Declared and paid dividends of $2,100.