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The consulting firm of Martin and Associates uses the accounts listed below. On a separate...

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Accounting

The consulting firm of Martin and Associates uses the accounts listed below. On a separate sheet of paper, set up T accounts for each of the accounts listed and record the balances as of December 1, 20X1 on the normal balance side of the accounts.

Cash $ 5,400 Joan Martin, Capital 15,700
Accounts receivable 8,400 Joan Martin, Drawing -0-
Prepaid rent -0- Fees income -0-
Office equipment 7,900 Utilities expense -0-
Accounts payable 6,000 Salaries expense -0-

The firm has the following transactions during the month of December 20X1. Record the effects of these transactions in the T accounts.

  1. Paid $1,400 for one month's rent.
  2. Collected $5,200 in cash from credit customers.
  3. Performed services for $7,400 in cash.
  4. Paid $4,400 for salaries.
  5. Issued a check for $3,400 to a creditor.
  6. Performed services for $10,400 on credit.
  7. Purchased office equipment for $1,400 on credit.
  8. The owner withdrew $3,400 in cash for personal expenses.
  9. Issued a check for $640 to pay the monthly utility bill.

  1. Post the above transactions into the appropriate T accounts.
  2. Using the information shown, prepare a trial balance for Martin and Associates at December 31, 20X1 before any adjusting entries are made.

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