Doris Stewart started her practice as a design consultant on September 1, 2015. During the first month of operations, the business completed the following transactions:

Sep. 1 Received $ 42,000 cash and issued common stock to Stewart.

4 Purchased office supplies, $ 700, and furniture, $ 1,900, on account.

6 Performed services for a law firm and received $ 1,400 cash.

7 Paid $ 24,000 cash to acquire land to be used in operations.

10 Performed services for a hotel and received its promise to pay the $ 1,000 within one week.

14 Paid for the furniture purchased on September 4 on account.

15 Paid assistant’s semimonthly salary, $ 1,490.

17 Received cash on account, $ 400.

20 Prepared a design for a school on account, $ 700.

25 Received $ 1,800 cash for design services to be performed in October.

28 Received $ 2,100 cash for consulting with Plummer & Gordon.

29 Paid $ 1,200 cash for a 12-month insurance policy starting on October 1.

30 Paid assistant’s semimonthly salary, $ 1,490.

30 Paid monthly rent expense, $ 650.

30 Received a bill for utilities, $ 350. The bill will be paid next month.

30 Paid cash dividends of $ 3,000.

Requirements

1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Furniture; Land; Accounts Payable; Utilities Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; Utilities Expense. Explanations are not required.

2. Open a T-account for each of the accounts.

3. Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.

4. Prepare the trial balance of Doris Stewart, Designer, as of September 30, 2015.