Juan Rios acted upon his entrepreneurial spirit and started a graphic design business called Juan’s Designs. Based on an excellent business plan, Juan was able to raise sufficient capital to begin operations in October 2019. During the month of October, the following events occurred related to the business.

1. Stockholders invested \($40,000\) cash in the business in exchange for common stock.

2.Paid \($2,500\) cash for rent on an office suite for the month of October.

3.Purchased two desktop computers, software, and a printer for \($10,000\) cash.

4.Purchased miscellaneous supplies for \($500\) that will be used during the month, all on account.

5.Purchased an advertisement in a local newspaper for \($300\) cash, announcing the opening of his new business.

6.Performed \($5,500\) of design work on account.

7.Received \($3,500\) cash from customers for design work previously completed.

8.Paid \($350\) cash toward the company’s accounts payable balance.

9.Paid \($2,500\) cash for wages of Juan Rios.

Required :

a. Use the following accounts to create a general ledger using T-accounts.

Prepare journal entries and post the above accounting transactions to their general ledger T-accounts.

b. Prepare an unadjusted trial balance as of October 31, 2019.

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Cash Accounts Receivable Equipment Accounts Payable Common Stock Service Revenue Supplies Expense Wage Expense Advertising Expense Rent Expense