Ricki Knapp incorporated Knapp Consulting, an accounting practice, on May 1, Journalize transactions, post, 2007. During the first month of operations, these events and transactions occurred. and prepare a trial balance.

May 1 Stockholders invested $52,000 cash in exchange for common stock of the Ore corporation. [GLs|

Hired a secretary-receptionist at a salary of $2,000 per month.

Purchased $800 of supplies on account from Keating Supply Company.

Paid office rent of $1,100 for the month.

Completed a tax assignment and billed client $1,500 for services provided.

12 Received $4,200 advance on a management consulting engagement. 17. Received cash of $3,600 for services completed for Goodman Co.

31 Paid secretary-receptionist $2,000 salary for the month.

31 Paid 40% of balance due Keating 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.

1 RNWeI h Instructions

(a) Journalize the transactions, including explanations.

(c) Cash $56,380

(b) Post to the ledger T accounts. Tot. trial

(c) Prepare a trial balance on May 31, 2007. balance $61,780 148 CHAPTER 3 The Accounting Information System Journalize transactions, post,