Lance Sedberry, Certified Public Accountant, operates as a professional corporation (P.C.). The business completed these transactions during the first part of January:

Jan. 2 Received $5,000 cash from Sed berry, and issued common stock to him.

2 Paid monthly office rent, $500.

3 Paid cash for a Dell computer, $3,000, with the computer expected to remain in service for 5 years.

4 Purchased office furniture on account, $6,000, with the furniture projected to last for 5 years.

5 Purchased supplies on account, $900.

9 Performed tax service for a client and received cash for the full amount of $800.

12 Paid utility expenses, $200.

18 Performed consulting service for a client on account, $1,700.

Required 1. Set up T-accounts for Cash, Accounts Receivable, Supplies, Equipment, Furniture, Accounts Payable, Common Stock, Dividends, Service Revenue, Rent Expense, Utilities Expense, and Salary Expense.

2. Journalize the transactions. Explanations are not required.

3. Post to the T-accounts. Key all items by date and denote an account balance on January 18 as Bal.

4. Prepare a trial balance at January 18. In the Serial Exercise of Chapter 3, we add transactions for the remainder of January and will require a trial balance at January 31.