Julia Dumars is a licensed CPA. During the first month of operations of her business, Larkspur, Inc., the following events and transactions occurred. May 1 Stockholders invested $21,700 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $1,100 per month. 3 Purchased $2,300 of supplies on account from Vincent Supply Company. 7 Paid office rent of $900 cash for the month. 11 Completed a tax assignment and billed client $2,500 for services performed. 12 Received $3,200 advance on a management consulting engagement. 17 Received cash of $1,800 for services performed for Orville Co. 31 Paid secretary-receptionist $1,100 salary for the month. 31 Paid 50% of balance due Vincent Supply Company. Julia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. Date Account Titles and Explanation Debit May 1 Cash May 2 Common Stock No Entry No Entry May 3 Supplies Accounts Payable May 7 Rent Expense Cash 21700 2300 900 May 11 Accounts Receivable 2500 Service Revenue May 12 Cash Unearned Service Revenue May 17 Cash Service Revenue 3200 1800 May 31 Salarles and Wages Expense 1100 Cash (Paid salaries) May 31 Accounts Payable Cash (Paid creditor on account) 1150 Credit 21700 2300 900 2500 3200 1800 1100 1150 Cash No. 101 Date Explanation Ref. Debit Credit Balance > Accounts Receivable Date 31 31 31 11 31 31 No. 112 Explanation Ref Debit Credit Balance 31 Supplies No. 126 Date Explanation Ref. Debit Credit Balance 31 Accounts Payable Date No. 201 Explanation Ref. Debit Credit Balance 31 31 Unearned Service Revenue No. 209 Date Explanation Ref. Debit Credit Balance 31 Common Stock No. 311 Date Explanation Ref. Debit Credit Balance 31 Service Revenue No. 400 Date Explanation Ref. Debit Credit Balance 11 31 Salaries and Wages Expense No. 726 Date Explanation Ref. Debit Credit Balance 31 Rent Expense No. 729 Date Explanation Ref. Debit Credit Balance 31