P2-34A Maurey Wills started an environmental consulting company and during the first month

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P2-34A Recording transactions, using four-column accounts, posting, and
preparing a trial balance [45–60 min]

Maurey Wills started an environmental consulting company and during the first month
of operations (February 2012), the business completed the following transactions:

a. Wills began the business with an investment of $48,000 cash and a building at $30,000. The business gave $78,000 of capital to Wills.

b. Purchased office supplies on account, $2,000.

c. Paid $14,000 for office furniture.

d. Paid employee’s salary, $2,200.

e. Performed consulting services on account, $3,700.

f. Paid $900 of the account payable created in transaction (b).

g. Received a $600 bill for advertising expense that will be paid in the near future.

h. Performed consulting service for cash, $1,100.

i. Received cash on account, $1,100.

j. Paid the following cash expenses:
(1) Rent on equipment, $1,000. (2) Utilities, $900.

k. Wills withdrew cash of $2,300.

Requirements

1. Open the following four-column accounts: Cash; Accounts receivable; Office
supplies; Office furniture; Building; Accounts payable; Wills, capital; Wills,
drawing; Service revenue; Salary expense; Rent expense; Advertising expense;
and Utilities expense.

2. Record each transaction in the journal. Use the letters to identify the transactions.

3. Post to the accounts and keep a running balance for each account.

4. Prepare the trial balance of Wills Environmental Consulting Company at
February 29, 2012.