Journalizing, posting, trial balance, income statement, and balance sheet (Learning Objectives 3 & 4) 25–30 min.

Munro Consulting, Inc., completed the following transactions during November 2014, its first month of operations:

Nov 2 368 11 19 20 28 Sold $80,000 of common stock to Darryl Munro to start the consulting practice.

Paid monthly office rent, $1,700.

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

Purchased office furniture on account, $1,200.

Purchased supplies on account, $400.

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

Paid utility expenses, $500.

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, and 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, 2014.

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

AppendixLO1