Transactional Analysis Problem
Scenario: Use following scenario and transactions to complete the activities below. On January 4, Mary Markham, an attorney, opened her private law firm...Markham Law (ML). The following transactions were completed during the month.
a) Mary invested $30,000 cash and $15,000 of office equipment in the business in exchange for capital stock.
b) ML paid a month's rent of $1800
c) ML paid $1200 for office supplies
d) ML collected $20,000 of legal fees for services performed
e) ML paid a secretary salary of $2200
f) ML purchased $500 of supplies on account
g) ML bought an auto for business use. It cost $15,000. ML paid $4000 down and charged the balance.
h) ML paid $4000 of dividends
i) ML paid $900 for auto maintenance and repairs
j) ML received a telephone bill for $300
k) ML paid the telephone bill
l) ML paid premiums of $1200 for one year insurance
m) ML paid $2500 for a computer
n) ML paid $700 for a cleaning service
o) ML received $5000 on retainer from MOB INC
Activities: Using the scenario and transactions above, complete the following activities.
1. Record the transactions in T accounts.
2. Prepare a trial balance for the end of the month.