P 2-2A 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.
2
Hired a secretary-receptionist at a
salary of $2,000 per month.
3 Purchased $2,500 of supplies on
account from Read Supply Company.
month.
7
11
Paid office rent of $900 cash for the
Completed a tax assignment and
billed client $2,100 for services provided.
12
Received $3,500 advance on a
management consulting engagement.
17 Received cash of $1,200 for
services completed for H. Arnold Co.
31 Paid secretary-receptionist $2,000
salary for the month.
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.
