Theodore McMahon opened a law office on April 1, 2024. During the first month of operations, the business completed the following transactions:

 

Requirements 

1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; McMahon, Capital; McMahon, Withdrawals; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required. 

2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; McMahon, Capital, 301; McMahon, Withdrawals, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531. 

3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal. 

4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2024.

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Apr. 1 3 4 7 11 15 16 18 19 25 28 29 29 30 30 McMahon contributed $70,000 cash to the business, Theodore McMahon, Attorney. The business gave capital to McMahon. Purchased office supplies, $1,100, and furniture, $1,300, on account. Performed legal services for a client and received $2,000 cash. Purchased a building with a market value of $150,000, and land with a market value of $30,000. The business paid $40,000 cash and signed a note payable to the bank for the remaining amount. Prepared legal documents for a client on account, $400. Paid assistant's semimonthly salary, $1,200. Paid for the office supplies purchased on April 3 on account. Received $2,700 cash for helping a client sell real estate. Defended a client in court and billed the client for $1,700. Received a bill for utilities, $650. The bill will be paid next month. Received cash on account, $1,100. Paid $3,600 cash for a 12-month insurance policy starting on May 1. Paid assistant's semimonthly salary, $1,200. Paid monthly rent expense, $2,100. McMahon withdrew cash of $3,200.