Web Marketing Services Inc. completed these transactions during the first part of January 2014:
Jan. 2 Received $5,000 cash from investors, and issued common shares.
2 Paid monthly office rent, $500.
3 Paid cash for a Dell computer, $3,000, with the computer expected to remain in service for five years.
4 Purchased office furniture on account, $6,000, with the furniture projected to last for five years.
5 Purchased supplies on account, $900.
9 Performed marketing service for a client, and received cash for the full amount of $800.
12 Paid utility expenses, $200.
18 Performed marketing service for a client on account, $1,700.
Requirements
1. Set up T-accounts for Cash, Accounts Receivable, Supplies, Equipment, Furniture, Accounts Payable, Share Capital, Dividends, Service Revenue, Rent Expense, Utilities Expense, and Salary Expense.
2. Journalize the transactions. Explanations are not required.
3. Post to the T-accounts. Key all items by date and denote an account balance on January 18 as Bal.
4. Prepare a trial balance at January 18. In the Serial Exercise of Chapter 3 , we add transactions for the remainder of January and will require a trial balance at January 31, 2014.