Troy Ridgell incorporated Ridgell Consulting, an accounting practice, on May 1, 2012. During the first month of operations, these events and transactions occurred. May 1 Stockholders invested $40,000 cash in exchange for common stock of the corporation.

2 Hired a secretary-receptionist at a salary of $2,000 per month.

3 Purchased $800 of supplies on account from Fleming Supply Company.

7 Paid office rent of $1,400 for the month.

11 Completed a tax assignment and billed client $1,500 for services provided.

12 Received $4,200 advance on a management consulting engagement.

17 Received cash of $3,300 for services completed for Goodman Co.

31 Paid secretary-receptionist $2,000 salary for the month.

31 Paid 50% of balance due Fleming Supply Company.

The company uses the following chart of accounts: Cash, Accounts Receivable, Supplies, Accounts Payable, Unearned Service Revenue, Common Stock, Service Revenue, Salaries and Wages Expense, and Rent Expense.


(a) Journalize the transactions, including explanations.

(b) Post to the ledger T accounts.

(c) Prepare a trial balance on May 31, 2012.