On January 2, 20__, ZIGI Turner, an attorney, opened a law office as ZAK Turner, Attorney at Law, P.C. These transactions were completed during the month:

a. Invested $20,000 cash and $13,200 worth of office equipment in the business in exchange

for capital stock.

b. Paid a month’s rent of $2,500.

c. Paid $1,000 for office supplies.

d. Collected legal fees of $19,600.

e. Paid secretary a salary of $1,100.

f. Purchased $200 worth of office supplies on account.

g. Bought an auto for business use. It cost $13,000. Turner paid $2,600 down and

charged the balance.

h. Paid dividends of $5,000.

i. Paid $800 for auto repairs and maintenance.

j. Received a $240 telephone bill.

k. Paid the $240 telephone bill.

l. Paid premiums of $1,700 on property insurance.

m. Paid $2,000 on accounts payable.

n. Paid $5,000 cash for books for the law library.

o. Paid $500 cash for janitor service.

Instructions:

(1)Record the transactions in the T accounts that follow.

(2)Prepare a trial balance,

Answer rating: 100% (QA)

1 TAccounts Cash Date Transactions Debit Credit Jan 2 Investment 20000 Jan 3 Rent payment 2500 Jan 3 ... View the full answer