Response to the following problem:
Christie Clinton started a consulting service and during the first month of operations (June 20X3) completed the following selected transactions:
a. Clinton began the business with an investment of $5,000 cash and a building valued at $50,000. The business gave Clinton owner's equity in the business.
b. Borrowed $30,000 from the bank; signed a note payable.
c. Purchased office supplies on account, $2,100.
d. Paid $18,000 for office furniture.
e. Paid employee's salary, $2,200.
f. Performed consulting service on account for client, $5,100.
g. Paid $800 of the account payable created in transaction (c).
h. Received a $600 bill for advertising expense that will be paid in the near future.
i. Performed consulting service for customers and received cash, $1,600.
j. Received cash on account, $1,200.
k. Paid the following cash expenses:
(1) Rent on equipment, $700. (2) Utilities, $400.
l. Withdrew $7,500 for personal use.
Required:
1. Open the following T-accounts: Cash; Accounts Receivable; Office Supplies; Office Furniture; Building; Accounts Payable; Note Payable; Christie Clinton, Capital; Christie Clinton, Withdrawals; Service Revenue; Salary Expense; Advertising Expense; Rent Expense; Utilities Expense.
2. Record each transaction directly in the T-accounts without using a journal. Use the letters to identify the transactions.
3. Prepare the trial balance of Clinton Consulting at June 30, 20X3.