ANALYZING TRANSACTIONS Several years ago, Mary Emerson founded Emerson Consulting, Inc., a consulting business specializing in financial planning for young professionals. The following captions and amounts summarize Emerson Consulting’s balance sheet at December 31, 2008, the beginning of the current year:

Assets 5 Liabilities 1 Equity Cash þ

Accounts Receivable þ Supplies ¼

Accounts Payable þ

Notes Payable þ

Capital Stock þ

Retained Earnings 3,000 6,600 4,800 500 1,000 10,000 2,900 During January 2009, the following transactions occurred:

a. Sold common stock to a new stockholder in exchange for $2,000 cash

b. Performed advisory services for a client for $1,550 and received the full amount in cash

c. Received $750 on account from a client for whom services had been performed on credit

d. Purchased supplies for $650 on credit

e. Paid $500 on accounts payable

f. Performed advisory services for $2,700 on credit g. Paid cash of $1,200 for secretarial services during January h. Paid cash of $800 for January’s office rent i. Paid rent for January 2009 in the amount of $900 j. Paid a dividend of $400 Required:

. Record the effects of the transactions listed above on the accounting equation for the business. Use the format given in the problem, starting with the totals at December 31, 2008.

. Prepare the trial balance at January 31, 2009.