Williams & Associates, Inc., completed the following transactions during October 2010, its first month of operations:

Requirement 1. Using the steps outlined in the five-step transaction analysis, journalize the transactions of Williams & Associates, Inc. List transactions by date. Use the following accounts: Cash, Accounts Receivable, Supplies, Building, Accounts Payable, Common Stock, Service Revenue, Salary Expense, and Rent Expense.

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Oct 1 Sold $50,000 of stock to Kirsten Williams to start the business. 3 Purchased supplies on account, $300. 5 6 11 18 24 31 Paid cash for a building to use for storage, $42,000. Performed service for customers and received cash, $1,600. Paid on accounts payable, $200. Performed service for customers on account, $2,400. Received cash from a customer on account, $800. Paid the following expenses: salary, $500; and rent, $1,200.