Roger Miller incorporated Skeptical Accountants, an accounting practice, on May 1, 2001. During the first month of operations of his business, these events and transactions occurred:

May 1 Stockholders invested $52,000 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 provided.

12 Received $4,500 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.

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

Instructions

(a) Journalize the transactions, including explanations.

(b) Post to the ledger T accounts.

(c) Prepare a trial balance on May 31, 2001.