Trevor Moore opened a law office on January 1, 2015. During the first month of operations, the business completed the following transactions:

Jan. 1 Moore contributed $ 59,000 cash to the business, Trevor Moore, Attorney. The business issued Common Stock to Moore.

3 Purchased office supplies, $ 600, and furniture, $ 2,000, on account.

4 Performed legal services for a client and received $ 1,300 cash.

7 Purchased a building, $ 100,000, and land, $ 20,000. The business paid $ 40,000 cash and signed a note payable to the bank for the remaining amount.

11 Prepared legal documents for a client on account, $ 700.

15 Paid assistant’s semimonthly salary, $ 1,180.

16 Paid for the office supplies purchased on January 3 on account.

18 Received $ 2,400 cash for helping a client sell real estate.

19 Defended a client in court and billed the client for $ 800.

25 Received a bill for utilities, $ 400. The bill will be paid next month.

29 Received cash on account, $ 700.

30 Paid $ 2,400 cash for a 12-month insurance policy starting on February 1.

30 Paid assistant’s semimonthly salary, $ 1,180.

31 Paid monthly rent expense, $ 1,500.

31 Paid cash dividends of $ 2,400.

Requirements

1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Building; Land; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.

2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Furniture, 141; Building, 151; Land, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.

3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal.

4. Prepare the trial balance of Trevor Moore, Attorney, at January 31, 2015.