Refer to exercise E2-24

{Requirements}

1. After recording the transactions in exercise E2-24, prepare the trial balance of Sonia Rothesay, Accountant, at May 31, 2020.

2. How well did the business perform during its first month? Give the basis for your answer.

Exercise E2-24

Set up the following T-accounts: Cash, Accounts Receivable, Office Supplies, Office Furniture, Accounts Payable, Share Capital, Dividends, Service Revenue, Salary Expense, and Rent Expense.
Record the following transactions directly in the T-accounts without using a journal. Use the letters to identify the transactions. Calculate the account balances and denote as Bal.

a. In the month of May 2020 , Sonia Rothesay opened an accounting firm by investing \(\$ 10,000\) cash and office furniture valued at \(\$ 5,000\). Organized as a professional corporation, the business issued common shares to Rothesay.

b. Paid monthly rent of \(\$ 1,600\).

c. Purchased office supplies on account, \(\$ 600\).

d. Paid employees' salaries of \(\$ 2,000\).

e. Paid \(\$ 200\) of the account payable created in transaction (c).

f. Performed accounting service on account, \(\$ 12,100\).
g. Declared and paid dividends of \(\$ 2,000\).