LO 2 3 4 Exercise 2-36 begins an accounting cycle exercise that will be completed in Chapter 3. E2-36. (Learning Objectives 2, 3, 4: Recording transactions; preparing a trial balance) Jerome Smith, Certified Public Accountant, operates as a professional corporation (P.C.). The business completed these transactions during the first part of March, 20X6: Mar 2 2 3 4 5 9 12 18 Received $6,500 cash from Smith, and issued ordinary shares to him. Paid monthly office rent, $500. Paid cash for a Dell computer, $2,500, with the computer expected to remain in service for five years. Purchased office furniture on account, $7,200, with the furniture projected to last for five years. Purchased supplies on account, $400. Performed tax service for a client and received cash for the full amount of $1,500. Paid utility expenses, $400. Performed consulting service for a client on account, $1,900. Recording Business Transactions Requirements 1. Journalize the transactions. Explanations are not required. 2. Post to the T-accounts. Key all items by date and denote an account balance on March 18, 20X6, as Bal. 3. Prepare a trial balance at March 18, 20X6. In the Serial Exercise of Chapter 3, we add transactions for the remainder of March and will require a trial balance at March 31.