Orange Communications was organized on January 1, 2019.

In January and February 2019, the following transactions were carried out by Orange Communications:

January 2019

1. Sold capital stock to owners for $90,000.

2. Purchased land and a small office building for a total price of $100,000, of which $35,000 was the value of the land and $65,000 was the value of the building. Paid $32,000 in cash and signed a note payable for the remaining $68,000.

3. Bought several computer systems on credit for $9,500 (payment due in February 2019).

4. Obtained a loan from Capital Bank in the amount of $50,000. Signed a note payable.

5. Incurred salary expenses of $1,500 to be paid in February 2019.

6. Billed $3,500 to a client for services provided in January 2019. The bill is due in February 2019.

February 2019

7. Paid the $50,000 note payable (owed in January 2019)

8. Paid the $9,500 account payable (owed in January 2019)

9. Collected the $3,500 (billed in January 2019)

10. Paid the $1,500 salaries (owed in January 2019)

Instructions

1) Post the above transactions for the months of January and February into ledger accounts in the form of T accounts (there are no beginning balances from before January since it is a new company)

2) Prepare a Trial Balance dated February 28, 2019