3. Michele Brown started up a new consulting firm to offer design and testing services to industries. During the first three months of its operation, the firm has recorded a number of transactions, shown as follows:

a. Michele Brown initiated the business by investing $35,000 in cash; $1,200 for office equipment; and $23,500 for instrumentation.

b. Land for an office site was purchased for $17,500: $5,000 paid in cash and a promissory note signed for the balance.

c. A prefabricated building was purchased for $7000 cash and moved onto the land for use as an office.

d. The premium of $800 was paid on an insurance policy.

e. A consulting project for Central Construction was completed, and $900 was collected.

f. Additional test equipment costing $10,000 was purchased for $2,000 in cash, and a note payable for the balance was signed.

g. A consulting project was completed on credit for Eastern Manufacturing for $1200.

h. Office supplies were purchased on credit for $300.

i. A bill was received for $250 and recorded as an account payable for rent on a

special machine used for the Western Technologies project.

j. A project for Superior Design was completed on credit for $1000.

k. Cash was received from Eastern Manufacturing for the consulting project they received on credit.

l. The wage of engineers, $5000, was paid.

m. Office supplies purchased earlier (for $300) were paid for.

n. Cash of $125 was paid for repairs to test equipment.

o. The company president, Larry Brown, wrote a $65 check on the bank account of the consulting firm to pay for repairs to his personal automobile, which is not used for business purposes.

p. The wage of the office workers, $3000, was paid.

q. The maintenance expenses of the instruments, $300, was paid.

Open the following T-accounts: cash, accounts receivable, prepaid insurance, test equipment, building, land, notes payable, accounts payable, office supplies, Larry Browncapital, Larry Brown withdrawals, sales revenue, Financial Accounting and Management for Engineering Managers 247 instrument maintenance expense, test equipment rental expense, office equipment, instrumentation, and test equipment repairs.