Iva Holz is a licensed incorporated CPA. During the first month of operations of her business, the following events and transactions occurred:

May 1 Invested \(\$ 42,000\) cash in exchange for common stock.

2 Hired a secretary-receptionist at a salary of \(\$ 1,000\) per month.

3 Purchased \(\$ 1,200\) of supplies on account from Read Supply Company.

7 Paid office rent of \(\$ 900\) for the month.

11 Completed a tax assignment and billed client \(\$ 1,100\) for services rendered.

12 Received \(\$ 3,500\) advance on a management consulting engagement.

Journalize transactions, post, and prepare a trial balance.

17 Received cash of \(\$ 1,200\) for services completed for H. Arnold Co.

31 Paid secretary-receptionist \(\$ 1,000\) salary for the month.
31 Paid \(40 \%\) of balance due Read Supply Company.
Iva uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Fees, No. 311 Common Stock, No. 400 Fees Earned, No. 726 Salaries Expense, and No. 729 Rent Expense.
\section*{Instructions}

(a) Journalize the transactions.

(b) Post to the ledger accounts.

(c) Prepare a trial balance on May 31, 1996.