ADC Studios was organized on January 1 2015. During the month the following transactions were carried out by ADC Studios:

Jan 01Sold capital stock to investors for $40,000.

Jan 03Paid $1200 in advance for 3 months rent of an office.

Jan 12Purchased equipment for $6,000; made a 50% cash down payment with the balance due in 30 days.

Jan 15Performed filming for a fee of $400; will be paid in 3 weeks.

Jan 18Made a payment of $500 on the equipment purchased on January 12.

1. Analyze the companys business transactions, and prepare journal entries to record them.

2. Post the transactions to the following T accounts: Cash; Accounts Receivable; Prepaid Rent; Equipment; Accounts Payable; Stockholders Equity; Filming Revenue;

3. Summarize your balances and prepare a Trial Balance for the month of January.

Important: Present proper Journal Entries and show posting to the T Accounts.