Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture, Accounts Payable, Common Stock, Dividends,

Question:

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. Leigh Hampton opened a law firm by investing $22,500 cash and office furniture with a fair value of $9,000. Organized as a professional corporation, the business issued to Hampton.
1. After recording the transactions in Exercise 2-25A, and assuming they all occurred in the month of January 2016, prepare the trial balance of Leigh Hampton, Attorney, at January 31, 2016. Use the T-accounts that have been prepared for the business.
2. How well did the business perform during its first month? Compute net income (or net loss) for the month.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...