During the first month of operations, these events and transactions occurred for Astromech Accounting Services Inc.:

May 1 Common shares were issued for $20,000 cash and a $10,000 note receivable.

1 Paid office rent of $950 for the month.

4 A secretary-receptionist was hired at a salary of $2,000 per month. She started work the same day.

4 Purchased $750 of supplies on account from Read Supply Corp.

11 Completed an income tax assignment and billed client $2,725 for services provided.

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

15 Received $1,350 for services completed for Arnold Corp.

20 Received $1,725 from client for work completed and billed on May 11.

22 Paid one third of balance due to Read Supply Corp.

25 Received a $275 telephone bill for May, to be paid next month.

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

29 Paid monthly income tax instalment, $300.

29 Paid $250 dividend.

30 Earned interest revenue on the note received on May 1 of $75 to be received later

Instructions

(a) Journalize the transactions.

(b) Using T accounts, post the May journal entries to the general ledger.