Munro Consulting, Inc., completed the following transactions during November 2012, its first month of operations:

Nov 2 Sold $80,000 of common stock to Darryl Munro to start the consulting practice.

3 Paid monthly office rent, $1,700.

6 Paid cash for a new computer, $1,800.

8 Purchased office furniture on account, $1,200.

11 Purchased supplies on account, $400.

19 Performed consulting service for a client on account, $2,600.

20 Paid utility expenses, $500.

28 Performed service for a client and received cash for the full amount of $1,600.

Requirements

1. Open, or set up, T-accounts in the ledger for the following accounts: Cash, Accounts Receivable; Supplies; Equipment; Furniture; Accounts Payable; Common Stock; Service Revenue; Rent Expense; Utilities Expense.

2. Record transactions in the journal. Explanations are not required.

3. Post the journal entries to the T-accounts, identify all items by date. Calculate the ending balance in each account.

4. Prepare a trial balance at November 30, 201 2.

5. Prepare the income statement, statement of retained earnings, and balance sheet.