Green Wave Company plans to own and operate a storage rental facility. For the first month of operations, the company has the following transactions.

1. Issue 10,000 shares of common stock in exchange for $42,000 in cash.

2. Purchase land for $24,000. A note payable is signed for the full amount.

3. Purchase storage container equipment for $9,000 cash.

4. Hire three employees for $3,000 per month.

5. Receive cash of $13,000 in rental fees for the current month.

6. Purchase office supplies for $3,000 on account.

7. Pay employees $9,000 for the first month’s salaries.

Required:

1. Record each transaction. Green Wave uses the following accounts: Cash, Supplies, Land, Equipment, Common Stock, Accounts Payable, Notes Payable, Service Revenue, and Salaries Expense.

2. Post each transaction to T-accounts and compute the ending balance of each account. Since this is the first month of operations, all T-accounts have a beginning balance of zero.

3. After calculating the ending balance of each account, prepare a trial balance.