Tucker Stevens opened an accounting firm on October 1, 2012. During the month of October, the business completed the following transactions:

Oct 1 The business sold $50,000 of common stock to open the firm, Stevens & Associates, Inc.

3 Purchased supplies, $300, and furniture, $1,300, on account.

5 Performed accounting service for a client and received cash, $1,800.

8 Paid cash to acquire land for a future office site, $25,000.

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

14 Paid assistant’s salary, $600.

16 Paid for the furniture purchased October 3 on account.

19 Received $300 cash for accounting services performed.

23 Billed a client for $1,700 of accounting services.

28 Received $400 from client on account.

31 Paid secretary’s salary, $600.

31 Paid rent expense, $1,500.

31 Paid $1,800 of dividends.

Requirements

1. Open, or set up, the following T-accounts: Cash, Accounts Receivable, Supplies, Furniture, Land, Accounts Payable, Common Stock, Dividends, Service Revenue, Salaries 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 at October 31, 2012.

5. Prepare the trial balance for Stevens & Associates, Inc., at October 31, 2012.