Josh has decided to incorporate his consulting practice underthe name of "Josh Consulting Inc." On July 1, 2008, he establisheda bank account for the business by transferring $30,000 from hispersonal savings account into a new business account. In exchangefor this cash, he received 30,000 shares of common stock.On July 1,2008, the company leased office space in New York. The lease is fortwo years at $500 per month and the entire biannual lease paymentof $12,000 is paid in advance.
A summary of the transactions for the remainder of 2008 (i.e., Julythrough December) is as follows:Purchased $800 worth of office supplies on account during 2008.Billed clients for services rendered. The total billings for 2008were $60,000.Cash received from clients on previously billed revenue was$52,000.Paid john agreed upon salary of $7,000 a month for the six-monthperiod.Paid $700 on account for the office supplies purchased during2008.All of the office supplies purchased during the year were used byDecember 31.Remember to record the rent expense that was prepaid inJuly.Record transactions in general journal and also recordtransactions in T-accounts.