During the first month of operations (June 2014), Schulich Graphics Service Inc. completed the following selected transactions:
a. Began the business with an investment of $20,000 cash and a building valued at $60,000. The corporation issued common shares to the shareholders.
b. Borrowed $90,000 from the bank, and signed a note payable.
c. Paid $35,000 for computer equipment.
d. Purchased office supplies on account for $1,300.
e. Performed computer graphic service on account for a client, $2,500.
f. Received $1,200 cash on account.
g. Paid $800 of the account payable created in transaction (d).
h. Received a $500 bill for advertising expense that will be paid in the near future.
i. Performed service for clients, and received $1,100 in cash.
j. Paid employees' salaries totalling $2,200.
k. Paid the following cash expenses: rent, $700; utilities, $400.
Requirements
1. Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Computer Equipment, Building, Accounts Payable, Note Payable, Share Capital, Service Revenue, Salary Expense, Advertising Expense, Rent Expense, and Utilities Expense.
2. Record each transaction directly in the T-accounts without using a journal. Use the letters to identify the transactions.
3. Prepare the trial balance of Schulich Graphics Service Inc. at June 30, 2014.