P$2-2$A

Kara Shin is a licensed accountant. During the first month of operations of her business, Kara Shin, Inc., the following events and transactions occurred.

May $1,$ Shareholders invested $20,000$ cash in exchange for

$2014$ ordinary shares.

$2$ Hired a secretary$-$receptionist at a salary of $2,000$ per month.

$3$ Purchased $1,500$ of supplies on account from Hartig

Supply Company.

$11$ Completed a tax assignment and billed client $2,800$ for services provided.

$17$ Received cash of $1,200$ for services completed for Lucille Co$.$

$31$ Paid secretary$-$receptionist $2,000$ salary for the month.

$31$ Paid $40\%$ of balance due to Hartig Supply Company.

Kara uses the following chart of accounts: No$.101$ Cash, No$.112$ Accounts Receivable, No$.126$ Supplies, No$.201$ Accounts Payable, No$.209$ Share Capital$-$Ordinary, No$.400$ Service Revenue, No$.726$ Salaries and Wages Expense, and No$.$

Instructions

$($a$)$ Journalize the transactions.

$($b$)$ Post to the ledger accounts.

$($c$)$ Prepare a trial balance on May $31,2014$

d$)$ Prepare Income statement, Retained earnings statement and Balanced sheet for May, $2014$