practice Exercise 2-18 Lee Management Consulting began operations and completed the following transactions Recording transactions, preparing a trial balance during June 2016: Trial bal total, $37,000 Jun 2 Received $25,000 cash from owner Michael Lee. The business gave owner's 2 Lee found a great downtown loft from which to operate. He paid cash for 3 Paid cash for a laptop, $1,000. The computer is expected to remain in service 4 Purchased office funiture on account, $5,000. The furniture is expected to rent for the month of June, $3,000 for four years. (Use the Equipment account for this transaction.) last for five years 5 Purchased supplies onaccount, $500. 9 Performed consulting services for a client on account, 53,000 12 Paid utility expenses with cash, S250. 8 Part 1 The Basic Structure of Accounting Performed consulting services for a client and received cash of $2,000. Received $2,000 in advance for client services to be performed at a rate of $100 per day for a period of 20 days. (Use the liability account Unearned Revenue for this transaction. We will learn more about this account in Chapter 3.) Hired an office manager on a part-time basis. She will be paid $2,000 per month. She started work on Monday, June 25 Paid $500 cash for the account related to supplies purchased on June 5 Collected a partial payment of $1,500 from the consulting client invoiced on June 9. 18 21 22 23 26 28 Michael Lee withdrew $2,000 cash for personal use 1. Open T-accounts in the ledger for Cash; Accounts Receivable; Supplies; Equipment Furniture; Accounts Payable; Unearned Revenue; Michael Lee, Capital; Michael Lee, Withdrawals Service Revenue; Rent Expense; Salaries Expense; and Utilities Expense. 2. Journalize the transactions. No explanations are required (to save time. 3. Post to the T-accounts. Identify all items by date and label an account balance as Bal. Formal posting references are not required. 4. Prepare an unadjusted trial balance at June 30, 2016