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. Lynn Dover opened a law firm by investing $12,500 cash and office furniture valued at $9,400. Organized as a professional corporation, the business issued common stock to Dover.
b. Paid monthly rent of $1,100.
c. Purchased office supplies on account, $900.
d. Paid employees’ salaries of $1,600.
e. Paid $500 of the account payable created in Transaction c.
f. Performed legal service on account, $8,000.
g. Declared and paid dividends of $2,200.