Transaction Entries, Posting, Trial Balance, and Adjusting Entries Market-Probe, a market research

firm, had the following transactions in June, its first month of operations.

June

1. J. Witson invested $28,000 of personal funds in the firm in exchange for common stock.

2. The firm purchased the following from an office supply company: office equipment,

$11,040; office supplies, $2,840. Terms called for a cash payment of $4,000, with the

remainder due in 60 days. (Make a compound entry.)

3. Paid June rent, $1,275.

4. Contracted for four months' advertising in a local newspaper at $325 per month and paid.

for the advertising in advance.

5. Signed a six-month contract with an electronics firm to provide research consulting

ices at a rate of $3,200 per month. Received two months' fees in advance. Work on

the contract started immediately.

6. Billed various customers for services rendered, $7,500.

7. Paid two weeks' salaries (five-day week) to employees, $3,600.

8. Paid J. Wit son's travel expenses to business conference, $1,440.

9. Paid $520 cash for postage to mail questionnaire.

10. Paid two weeks' salaries to employees, $3,600.

11. Billed various customers for services rendered, $7,200.

12. Collected $7,800 from customers on account.

13. J. Witson received a $2,500 cash dividend.

Required

a. Set up a general ledger that includes the following accounts: Cash; Accounts Receivable; Office

Supplies; Prepaid Advertising; Office Equipment; Accumulated Depreciation- Office Equipment;

Accounts Payable; Salaries Payable; Unearned Service Fees; Common Stock; Dividends;

Service Fees Earned; Salaries Expense; Advertising Expense; Supplies Expense; Rent Expense;

Travel Expense; Depreciation Expense-Office Equipment; and Postage Expense.

b. Record June transactions in general journal form and post to the ledger accounts.

c. Prepare an unadjusted trial balance as of June 30.

d. Record adjusting journal entries in general journal form, and post to the ledger accounts. The following information is available on June 30:

Office supplies on hand, $1,830.

Accrued salaries, $925.

Estimated life of office equipment, eight years.

Also, make any necessary adjusting entries for advertising and for service fees indicated by the June transactions