Diane Smith incorporated Accurate Accountants, an accounting practice, on 1 May 2015. During the first month of operations of her business, these events and transactions occurred: 

The following chart of accounts is used: (100) Cash, (110) Accounts Receivable, (115) Supplies, (200) Accounts Payable, (210) Revenue Received in Advance, (300) Share Capital, (400) Service Revenue, (500) Salaries Expense, and (510) Rent Expense. 

Required

(a) Journalise the transactions, including narrations.

(b) Post to the ledger T accounts.

(c) Prepare a trial balance on 31 May 2015.

(d) Prepare a statement of profit or loss for the month of May and a classified statement of financial position as at 31 May 2015. 

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May 1 Shareholders invested $156 000 cash in exchange for shares in the company. Hired a receptionist at a salary of $3000 per month. Purchased $3600 of supplies on account from Read Supply Ltd. Paid office rent of $2700 for the month. 2 37 11 12 17 31 31 Completed a tax return and invoiced the client $3300 for services provided. Received $13500 advance on a management consulting engagement. Received cash of $3600 for services completed for H. Arnold Ltd. Paid receptionist $3000 salary for the month. Paid 40% of balance owing to Read Supply Ltd.