Transactions Analysis and Trail Balance: Make T-Accounts for the following accounts that appear in the general ledger of Daniel Kelly, an attorney: Cash, Accounts Receivable, Office Equipment, Legal Database Subscription, Accounts Payable, Common Stock, Dividends, Legal Fees Earned, Salaries Expense, Rent Expense, and Utilities Expense. Prepare journal entries and record the following October transactions in the T-Accounts and key all entries with the number identifying the transaction. Determine the balance in each account and prepare a trail balance sheet as of October 31.
Oct.
1 – Kelly started his practice by contributing $19,500 cash to the business on October 1, receiving shares of common stock in the company.
2 –Purchased office equipment on account, $10,400.
3 –Paid office rent for October, $700.
4 – Paid $9,600 to access online legal database for two years.
5 – Billed clients for services rendered, $11,300
6 – Made $6,000 payment on account for the equipment purchased on October 2.
7 – Paid legal assistant’s salary, $2,800.
8 – Collected $9,400 from clients previously billed for services.
9 – Received invoice for October utilities, $180; it will be paid in November.
10 – The company paid stockholders $1,500 as a cash dividend.