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On January 4, Mary Markham, an attorney, opened her private law
firm…Markham Law
(ML). The following transactions were completed during the
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.
Submit all files to the dropbox.
1. Record the transactions in T accounts.
2. Prepare a trial balance for the end of the month.


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