Explain what a transaction is; analyze the impact of business transactions on accounts; record [journalize and post] transactions in the books; construct and use a trial balance) You are a Certified Public Accountant Students name, Certified Public Accountant, and operate as a professional corporation (P.C.). Your business completed these transactions during the first part of August 2016:

Aug. 1 The P.C. received $20,000 cash from you, and issued you common stock.

2 Paid monthly office rent, $800

3 Purchased a computer on account for $2,500, with the computer expected to remain in service for five years.

4 Purchased office furniture for cash, $5,000, with the furniture projected to last for five years.

5 Purchased supplies on account, $800.

9 Performed tax service for a client on account, $1,500.

15 Received and paid utility expenses, $350.

20 Preformed consulting services and received cash for the full amount of $1,800.

LO USING EXCEL:

1. Journalize the transaction. Explanations are not required.

2. Post to the T-accounts. Key all items by date and determine the ending balance in each account. Denote an account balance on August 20, 2016, as Bal.

3. Prepare a trial balance at August 20, 2016.