(L. OBJ. 2, 3, 4, 5) Recording transactions, using four-column accounts, posting, and pr...

(L. OBJ. 2, 3, 4, 5) Recording transactions, using four-column accounts, posting, and preparing a trial balance [45—60 min]

Mike Smith started an environmental consulting company and during the first month of operations (December 2012) the business completed the following transactions:

Requirements

1. Open the following four-column accounts: Cash; Accounts receivable; Office supplies; Office furniture; Building; Accounts payable; Mike Smith, Capital; Mike Smith, Withdrawals; Service revenue; Salary expense; Rent expense; Advertising expense; 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 Smith Environmental Consulting Company at December 31, 2012.