Teddy Sargent opened an accounting firm on May 1, 2015. During the month of May the business completed the following transactions:
May 1 The business sold $80,000 of shares to open the firm, Sargent & Associates, Inc.
3 Purchased supplies, $500, and furniture, $1,200, on account.
5 Performed accounting service for a client and received cash, $2,700.
8 Paid cash to acquire land for a future office site, $22,000.
11 Prepared tax returns for a client on account, $2,500.
14 Paid assistant's salary, $1,200.
16 Paid for the furniture purchased May 3 on account.
19 Received $700 cash for accounting services performed.
23 Billed a client for $1,300 of accounting services.
28 Received $400 from client on account.
31 Paid assistant's salary, $1,200.
31 Paid rent expense, $1,700.
31 Paid $1,200 of dividends.
Requirements
1. Open, or set up, the following T-accounts: Cash, Accounts Receivable, Supplies, Furniture, Land, Accounts Payable, Common Shares, Dividends, Service Revenue, Salaries Expense, and Rent Expense.
2. Journalize transactions. Explanations are not required.
3. Post the transactions to the T-accounts, using transaction dates as posting references.
4. Calculate the balance in each account.
5. Prepare the trial balance for Sargent & Associates, Inc. at the end of May.