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

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

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 journal entries to the T-accounts. Identify all items by date. Calculate the ending balance in each account.
4. Prepare a trial balance at September 30, 2014.
5. Prepare the income statement, statement of retained earnings, and balance sheet.AppendixLO1

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Sep 2 Sold $50,000 of common stock to James Nolan to start the consulting practice. 3 Paid monthly office rent, $1,750. 6 Paid cash for a new computer, $1,400. Purchased office furniture on account, $2,700. 11 Purchased supplies on account, $225. 20 28 Performed consulting service for a client on account, $1,835. Paid utility expenses, $285. Performed service for a client and received cash for the full amount of $975.