Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture, Accounts Payable, Share Capital, 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. Calculate the account balances and denote as Bal.
a. In the month of May 2017, Sonia Rothesay opened an accounting firm by investing
$10,000 cash and office furniture valued at $5,000. Organized as a professional corporation, the business issued common shares to Rothesay.
b. Paid monthly rent of $1,600.
c. Purchased office supplies on account, $600.
d. Paid employees' salaries of $2,000.
e. Paid $200 of the account payable created in transaction (c).
f. Performed accounting service on account, $12,100.
g. Declared and paid dividends of $2,000.