Refer to Exercise 2-23.
1. After recording the transactions in Exercise 2-23, prepare the trial balance of Linda
English, Attorney, at May 31, 20X9.
2. How well did the business perform during its first month? Compute net income (or net loss) for the month.
In Exercise 2-23
Record the following transactions directly in the T-accounts without using a journal. Use the letters to identify the transactions.
a. Linda English opened a law firm by investing $10,000 cash and office furniture valued at $5,000. Organized as a professional corporation, the business issued common stock to English.
b. Paid monthly rent of $1,500.
c. Purchased office supplies on account, $800.
d. Paid employees' salaries of $1,800.
e. Paid $400 of the account payable created in transaction c.
f. Performed legal service on account, $8,300.
g. Declared and paid dividends of $2,000.