Desiree Clark is a licensed CPA. During the fi rst month of operations of her business, the following events and transactions occurred.

May 1 Clark invested $20,000 cash in her business.

2 Hired a secretary-receptionist at a salary of $2,000 per month.

3 Purchased $2,500 of supplies on account from Read Supply Company.

7 Paid offi ce rent of $900 cash for the month.

11 Completed a tax assignment and billed client $3,200 for services provided.

12 Received $3,500 advance on a management consulting engagement.

17 Received cash of $1,200 for services completed for C. Desmond Co.

31 Paid secretary-receptionist $2,000 salary for the month.

31 Paid 60% of balance due Read Supply Company.

Desiree uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 301 Owner’s Capital, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

Instructions

(a) Journalize the transactions.

(b) Post to the ledger accounts.

(c) Prepare a trial balance on May 31, 2012.