Scenario: Use following scenario and transactions to complete the activities below. On January 4, Mary Markham, an attorney, opened her private law firm...Markham Law (ML). The following transactions were completed during the month.
1) Mary invested $30,000 cash and $15,000 of office equipment in the business in exchange for capital stock.
2) ML paid a month's rent of $1800
3) ML paid $1200 for office supplies
4) ML collected $20,000 of legal fees for services performed
5) ML paid a secretary salary of $2200
6) ML purchased $500 of supplies on account
7) ML bought an auto for business use. It cost $15,000. ML paid $4000 down and charged the balance(on credit).
8) ML paid $4000 of dividends
9) ML paid $900 for auto maintenance and repairs
10) ML received a telephone bill for $300
11) ML paid the telephone bill
12) ML paid premiums of $1200 for one year insurance
13) ML paid $2500 for a computer
14) ML paid $700 for a cleaning service
15) ML received $5000 on retainer(advanced payment for the services to be rendered in the future) from MOB INC
Activities: Using the scenario and transactions above, complete the following activities.
1. Record the transactions in T accounts.(make sure that you number each transaction and use the account names that listed below)
2. Prepare a trial balance for the end of the month.
ACCOUNT NAMES TO BE USED:
Cash
Office Supplies
Prepaid Insurance
Office Equipment
Auto
Computer
Accounts Payable
Note Payable
Unearned Revenue
Capital Stock
Dividends
Earned Revenue
Auto Expense
Rent Expense
Salary Expense
Utility Expense
Cleaning Expense