Destiny Cloud is a licensed Monitor. During the first month of operations of her business, the following events and transactions occurred. May

1 Cloud invested $20,000 cash in her business.

2 Hired a staff at a salary of $2,000 per month.

3 Purchased $2,500 of supplies on account from Monika Cloud Company.

7 Paid salaries of $900 cash for the month.

11 Completed a tax assignment and billed client $3,200 for services provided.

12 Received $3,500 advance on a management consulting engagement.

15 Purchased additional office equipment for $3,500, paying $1,500 in cash and the balance on account.

17 Received cash of $1,200 for services completed for W.Deslor Co.

19 Withdrew $1,500 cash for personal use.

25 Earned revenue of $8,000, of which $5,500 is received in cash and the balance is due in August.

30 Paid secretary-receptionist $2,000 salary for the month.

31 Paid 50% of balance due Monica Cloud Company.

Instructions

(a) Journalize the transactions.

(b) Post to the ledger accounts. (Cash, A/P, A/R, Capital, Withdraw)