During the first month of operations (April 20X1), Music Services Corporation completed the following selected transactions:

a. The business received cash of $25,000 and a building valued at $50,000. The corporation issued common stock to the stockholders.

b. Borrowed $50,000 from the bank; signed a note payable.

c. Paid $60,000 for music equipment.

d. Purchased supplies on account, $1,000.

e. Paid employees' salaries, $1,300.

f. Received $500 for service performed for customers.

g. Performed service for customers on account, $1,800.

h. Paid $600 of the account payable created in Transaction d.

i. Received a $500 bill for utility expense that will be paid in the near future.

j. Received cash on account, $1,100.

k. Paid the following cash expenses: (1) rent, $1,000; (2) advertising, $800.

Required

1. Set up the following T-accounts: Cash, Accounts Receivable, Supplies, Music Equipment, Building, Accounts Payable, Note Payable, Common Stock, Service Revenue, Salary Expense, Rent Expense, Advertising Expense, and Utilities Expense.

2. Record the foregoing transactions directly in the T-accounts without using a journal. Use the letters to identify the transactions.

3. Prepare the trial balance of Music Services Corporation at April 30, 20X1.