Doris Higgins started her practice as a design consultant on September 1 of the current year. During the first month of operations, the business completed the following transactions:

Requirement 

Open the following T-accounts: Cash; Accounts Receivable; Supplies; Furniture; Land; Accounts Payable; Doris Higgins, Capital; Doris Higgins, Withdrawals; Service Revenue; Salary Expense; Rent Expense.

1. Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required.

2. Post the transactions to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal., as shown in the chapter.

3. Prepare the trial balance of Doris Higgins, Designer, at September 30 of the current year.

Sep. 1 Higgins transferred $25,000 cash from her personal bank account to a business account titled Doris Higgins, Designer. The business gave Higgins owner's equity in the firm. 4 Purchased supplies, $200, and furniture, $1,800, on account. 6 Performed services for a law firm and received $4,000 cash. 7 Paid $20,000 cash to acquire land for a future office site. Performed service for a hotel and received its promise to pay the $800 within one week. 10 14 Paid for the furniture purchased September 4 on account. 15 Paid secretary's salary, $600. 17 Received cash on account, $500. 20 Prepared a design for a school on account, $800. 28 Received $1,500 cash for consulting with Procter & Gamble. 30 Paid secretary's salary, $600. 30 Paid rent expense, $500. 30 Withdrew $2,000 for personal use.