Reference no: EM133209518
Terrence Murphy opened a law office on January 1, 2018. During the first month of operations, the business completed the following transactions:
Jan. 1 Murphy contributed $78,000 cash to the business, Terrence Murphy,
Attorney. The business gave capital to Murphy.
3 Purchased office supplies, $600, and furniture, $1,700, on account.
4 Performed legal services for a client and received $1,000 cash.
7 Purchased a building with a market value of $130,000, and land with a market value of $25,000. The business paid $25,000 cash and signed a note payable to the bank for the remaining amount.
11 Prepared legal documents for a client on account, $400.
15 Paid assistant's semimonthly salary, $1,120.
16 Paid for the office supplies purchased on January 3 on account.
18 Received $2,700 cash for helping a client sell real estate.
19 Defended a client in court and billed the client for $1,800.
25 Received a bill for utilities, $600. The bill will be paid next month.
29 Received cash on account, $1,500.
30 Paid $1,200 cash for a 12-month insurance policy starting on February 1.
30 Paid assistant's semimonthly salary, $1,120.
31 Paid monthly rent expense, $1,800.
31 Murphy withdrew cash of $2,200.