Teddy Sargent opened an accounting firm on May 1, 2013. During the month of May the business completed the following transactions:

May 1 The business sold $80,000 of shares to open the firm, Sargent & Associates, Inc.

3 Purchased supplies, $500, and furniture, $1,200, on account.

5 Performed accounting service for a client and received cash, $2,700.

8 Paid cash to acquire land for a future office site, $22,000.

11 Prepared tax returns for a client on account, $2,500.

14 Paid assistant’s salary, $1,200.

16 Paid for the furniture purchased May 3 on account.

19 Received $700 cash for accounting services performed.

23 Billed a client for $1,300 of accounting services.

28 Received $400 from client on account.

31 Paid assistant’s salary, $1,200.

31 Paid rent expense, $1,700.

31 Paid $1,200 of dividends.

Requirements

1. Open, or set up, the following T-accounts: Cash, Accounts Receivable, Supplies, Furniture, Land, Accounts Payable, Common Shares, Dividends, Service Revenue, Salary Expense, and Rent Expense.

2. Journalize transactions. Explanations are not required.

3. Post the transactions to the T-accounts, using transaction dates as posting references.

4. Calculate the balance in each account.

5. Prepare the trial balance for Sargent & Associates, Inc. at the end of May.