Sammy Baden incorporated Baden Consulting, an accounting practice, on May 1, 2010. During the first month of

Question:

Sammy Baden incorporated Baden Consulting, an accounting practice, on May 1, 2010. During the first month of operations, these events and transactions occurred. May 1 Stockholders invested $50,000 cash in exchange for common stock of the corporation.

2 Hired a secretary-receptionist at a salary of $2,000 per month.

3 Purchased $800 of supplies on account from Fleming Supply Company.

7 Paid office rent of $1,100 for the month.

11 Completed a tax assignment and billed client $1,000 for services provided.

12 Received $4,200 advance on a management consulting engagement.

17 Received cash of $3,600 for services completed for Goodman Co.

31 Paid secretary-receptionist $2,000 salary for the month.

31 Paid 50% of balance due Fleming Supply Company.

The company uses the following chart of accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Revenue, Common Stock, Service Revenue, Salaries Expense, and Rent Expense.

Instructions

(a) Journalize the transactions, including explanations.

(b) Post to the ledger T accounts.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...