A corporation known as the Stevens Collection Agency is organized by Betty Stevens and Charles Kirby on January 1, 1979. The business of the firm is to collect overdue accounts receivable of various clients on a commission basis. The following transactions occurred during January:

(1) Stevens contributes office supplies worth \(\$ 2,000\) and cash of \(\$ 13,000\). She is issued stock certificates for 500 shares with a par value of \(\$ 30\) a share.

(2) Kirby contributes \(\$ 2,000\) in cash and office equipment valued at \(\$ 10,000\). He is issued stock certificates for 400 shares.

(3) The Stevens agency collects \(\$ 600\) on an account that was turned over to it by the Giggly Market. The commission earned is 50 percent of the amount collected.

(4) The stenographer's salary during the month is paid, \(\$ 800\).

(5) A bill is received from Lyband and Linn, certified public accountants, for \(\$ 300\) to cover the cost of installing a computer system.

(6) The amount due the Giggly Market [see (3)] is paid.

(7) An office is leased for the year beginning February 1, 1979, and the rent for 3 months is paid in advance. A check is drawn for \(\$ 1,200\).

(8) An automobile is purchased for \(\$ 3,500 ; \$ 2,500\) is paid by check, and an installment contract, payable to the Scotch Automobile Sales Company, is signed for the balance.

a Open T-accounts and record the transactions during January.

b Prepare an adjusted, preclosing trial balance as of January 31, 1979. Indicate, by "RR" or "E", accounts that are revenue or expense accounts.