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. Lisa Oxford opened a law firm by investing $13,000 cash and office furniture valued at $8,900. Organized as a professional corporation, the business issued common stock to Oxford.
b. Paid monthly rent of $1,800.
c. Purchased office supplies on account, $1,300.
d. Paid employee salaries of $1,800.
e. Paid $900 of the accounts payable created in Transaction c.
f. Performed legal service on account, $8,700.
g. Declared and paid dividends of $2,500.