McDonald Consulting, Inc. completed the following transactions during December 2015, its first month of operations:
Dec 2 Sold $10,000 of shares to Dan McDonald to start the consulting practice.
3 Paid monthly office rent, $800.
6 Paid cash for a new computer, $1,600.
8 Purchased office furniture on account, $2,100.
11 Purchased supplies on account, $200.
19 Performed consulting service for a client on account, $900.
20 Paid utility expenses, $300.
28 Performed service for a client and received cash for the full amount of $1,100.
Requirements
1. Open, or set up, T-accounts in the ledger: Cash; Accounts Receivable; Supplies;
Equipment; Furniture; Accounts Payable; Common Shares; Service Revenue;
Rent Expense; Utilities Expense.
2. Record transactions in the journal. Explanations are not required.
3. Post the transactions to the T-accounts, identify all items by date. Calculate the balance in each account.
4. Prepare a trial balance at December 31, 2015.
5. Prepare the income statement, statement of changes in equity, and statement of financial position.