Iva Holz operates an incorporated accounting practice. During the first month of operations of her business, these events and transactions occurred:

May 1 Invested \(\$ 42,000\) cash in exchange for common stock of the corporation.

2 Hired a secretary-receptionist at a salary of \(\$ 1,000\) per month.

3 Purchased \(\$ 1,200\) of supplies on account from Read Supply Company.

7 Paid office rent of \(\$ 900\) for the month.

11 Completed a tax assignment and billed client \(\$ 1,100\) for services rendered.

12 Received \(\$ 3,500\) advance on a management consulting engagement.

17 Received cash of \(\$ 1,200\) for services completed for H. Arnold Co.

31 Paid secretary-receptionist \(\$ 1,000\) salary for the month.

31 Paid \(40 \%\) of balance due Read Supply Company.

Iva uses the following chart of accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Revenue, Common Stock, Service Revenue, Salaries Expense, and Rent Expense.

\section*{Instructions}

(a) Journalize the transactions.

(b) Post to the ledger \(\mathrm{T}\) accounts.

(c) Prepare a trial balance on May 31, 1998