Reference no: EM131774652
Question - "Jane Kent is a licensed CPA. During the first month of operations of her business, the following events and transactions occurred.
May 1 Kent invested $25,000 cash
May 2 Hired a secretary-receptionist at a salary of $2,000 per month
May 3 Purchased $2,500 of supplies on account from Read Supply Company.
May 7 Paid office rent of $900 cash for the month
May 11 Completed a tax assignment and billed client $2,100 for services provided
May 12 Received $3,500 advance on a management consulting engagement
May 17 Received cash of $1,200 for services completed for H. Arnold Co.
May 31 Paid secretary-receptionist $2,000 salary for the month
May 31 Paid 40% of balance due Read Supply Company
Jane uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No. 301 Jane Kent, Capital; No. 400 Service Revenue, No. 726 Salaries Expense, and No. 729 Rent Expense.
Instructions:
a) Journalize the transactions.
b) Post to the ledger accounts.
c) Prepare a trial balance on May 31, 2010.