Set up T accounts for Cash; Accounts Receivable; Supplies; Accounts Payable; Brenda Wells, Capital; Brenda Wells, Drawing; Professional Fees; and Operating Expenses.

(a) In the T accounts, record the following transactions of Wells Consultant Services for May, 2007, identifying each entry by number:

(1) Wells invested $12,000 cash in the business.

(2) Purchased supplies on account, $5,750.

(3) Paid operating expenses, $5,000.

(4) Billed clients for fees, $6,940.

(5) Received cash from cash clients, $4,200.

(6) Paid creditors on account, $1,000.

(7) Received $2,600 from clients on account.

(8) Withdrew $1,000 cash for personal use.

(b) Prepare a trial balance as of May 31, 2007 for Wells Consultant Services.

(c) Assuming that supplies expense (which has not been recorded) amounts to $1,000 for May, determine the following:

(1) Net income for the month.

(2) Owner's equity as of May 31.