(Learning Objective 3, 4: Recording transactions directly in T-accounts

(Learning Objective 3, 4: Recording transactions directly in T-accounts; preparing and using a trial balance) During the first month of operations (June 20X3), Walker Consulting Company completed the following selected transactions:a. Began the business with an investment of $20,000 cash and a building valued at $60,000. The corporation issued common stock to the stockholders.b. Borrowed $90,000 from the bank; signed a note payable.c. Purchased supplies on account for $1,300.d. Paid $35,000 for computer equipment.e. Paid employees’ salaries totaling $2,200.f. Performed consulting service on account for a client, $2,100.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 service for clients and received $1,100 in cash.j. Received $1,200 cash on account.k. Paid the following cash expenses: (1) rent, $700; (2) utilities, $400.Required1. Set up the following T-accounts: Cash, Accounts Receivable, Supplies, Computer Equipment, Building, Accounts Payable, Note Payable, Common Stock, Service Revenue, Salary Expense, Advertising Expense, Rent Expense, and 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 Walker Consulting Company, at June 30, 20X3.

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