Bernie Pillows opened a consulting company in Fairview and the following transactions resulted:
A. Bernie invested $20,000 in the consulting business.
B. Bought office equipment on account, $5,000.
C. Received cash for consulting work that it completed for a client, $900.
D. Bernie paid a personal bill from the company bank account, $90.
E. Paid advertising expense for the month, $400.
F. Rent expense for the month was due but not yet paid, $1,400.
G. Paid $1,000 as partial payment of what was owed from the transaction in B.
As Bernie’s accountant, analyze and record the transactions in T account form. Set up the T accounts on the basis of the chart of accounts on page 82. Enter each transaction in the appropriate T account and label it with the letter of the transaction.