Dee Matthias opened a law office on January 2 of the current year. During the first month of operations the business completed the following transactions:

Jan. 2 Matthias deposited \(\$ 30,000\) cash in the business bank account Dee Matthias, Attorney, Professional Corporation, (P.C.). The corporation issued common stock to Matthias.

3 Purchased supplies, \(\$ 500\), and furniture, \(\$ 2,600\), on account.

4 Performed legal service for a client and received cash, \(\$ 1,500\).

7 Paid cash to acquire land for a future office site, \(\$ 22,000\).

11 Defended a client in court and billed the client for \(\$ 800\).

15 Paid secretary salary, \(\$ 650\).

16 Paid for the furniture purchased January 3 on account.

17 Paid the telephone bill, \(\$ 110\).

18 Received partial payment from client on account, \(\$ 400\).

19 Prepared legal documents for a client on account, \(\$ 900\).

22 Paid the water and electricity bills, \(\$ 130\).

29 Received \(\$ 1,800\) cash for helping a client sell real estate.

31 Paid secretary salary, \(\$ 650\).

31 Paid rent expense, \(\$ 700\).

31 Declared and paid dividends of \(\$ 2,200\).

\section*{Required}

Open the following T-accounts: Cash; Accounts Receivable; Supplies; Furniture; Land; Accounts Payable; Common Stock; Dividends; Service Revenue; Salary Expense; Rent Expense; Utilities Expense.

1. Record each transaction in the journal, using the account titles given. Key each transaction by date. Explanations are not required.

2. Post the transactions to the ledger, using transaction dates as posting references in the ledger. Label the balance of each account Bal., as shown in the chapter.

3. Prepare the trial balance of Dee Matthias, Attorney, P.C., at January 31 of the current year.

4. How will what you learned in this problem help you manage a business?