Problem $5-4$:

The Grover Darden Legal Firm had the following transactions during the month of April.

April $2$

$4$

$9$

$12$

$15$

$20$

$25$

Grover Darden, the owner, invested $$70,000$ cash and a Law

Library valued at $60,000$ in the firm.

Paid $3$ months rent, $$3,000.$

Provided service to a client on account, $$2,500.$

Provided service to a client and collected, $$1,000.$

Purchased office supplies on account, $$7,000.$

Completed a legal case and collected $$50,000.$

Paid salaries, $$3,500.$

Required

a$.$ Set up the following ledgers:

Cash $(101)$

Salaries Payable $(209)$

Accounts Receivable $(102)$

G$.$ Darden, Capital $(301)$

Office Supplies $(105),$

Legal Fees Earned $(401)$

Prepaid Rent $(107)$

Office Supplies Expense $(505)$

Law Library $(110)$

Rent Expense $(507)$

Account Payable $(201),$

Salaries Expense $(509)$

b$.$ Journalize and post the transactions. Omit explanations.

c$.$ Prepare an Unadjusted Trial Balance.

d$.$ Journalize and post the following adjustments:

Balance in Prepaid Rent is $$2,000.$

Accrued Salaries is $$2,100.$

$$1,000$ of Office Supplies were used.

e$.$ Prepare an Adjusted Trial Balance.

f$.$ Prepare an Income Statement, Statement of Owner's Equity, and Balance Sheet.