P3.7A (LO 3, 4) During the first month of operations, the following transactions occurred for Virmani Architects Inc.: Apr. 1 Invested cash of $10,000 and equipment of $6,000 in the company in exchange for common shares. 1 Hired a secretary-receptionist at a monthly salary of $1,900. 2 Paid office rent for the month, $950. 3 Purchased architectural supplies on account from Halo Ltd., $1,900. 10 Completed blueprints on a carport and billed client $1,200. 13 Received $800 cash advance from a client for the design of a new home. 20 Received $2,500 for services performed for a client. 21 Received $600 from the client in partial payment for work completed and billed on April 10. 23 Received April's telephone bill for $135; due May 15. (Hint: Use the Utilities Expense account for telephone services.) 25 Declared and paid $160 of dividends to shareholders. 27 Paid 50% ($950) of the amount owed to Halo Ltd. on account. (See April 3 transaction.) 30 Paid secretary-receptionist for the month, $1,900. 30 Paid monthly income tax instalment, $100. Instructions a. Journalize the transactions. b. Set up T accounts, post the journal entries to the general ledger, and determine the April 30 balances for each account. c. After the accountant finished journalizing and posting the above transactions, he complained that this process took too much time. He thought it would be more efficient to omit the journal entry step in the accounting cycle and record the transactions directly in the general ledger. Explain to the accountant whether you think this is a good idea or not, and why. Record and post transactions, prepare trial balance