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P2-3B Slocombe Services was formed on May 1, 2008. The following transactions took place during this month.

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P2-3B Slocombe Services was formed on May 1, 2008. The following transactions took place during the first month.

Transactions on May 1:
1. Stockholders invested $100,000 cash in the company in exchange for common stock.

2. Hired two employees to work in the warehouse.They will each be paid a salary of $3,000 per month.

3. Signed a 2-year rental agreement on a warehouse; paid $36,000 cash in advance for the first year.

4. Purchased furniture and equipment costing $60,000. A cash payment of $20,000 was made immediately; the remainder will be paid in 6 months.

5. Paid $3,000 cash for a one-year insurance policy on the furniture and equipment. Transactions during the remainder of the month:

6. Purchased basic office supplies for $1,000 cash.

7. Purchased more office supplies for $3,000 on account.

8. Total revenues earned were $30,000—$10,000 cash and $20,000 on account.

9. Paid $800 to suppliers for accounts payable due.

10. Received $5,000 from customers in payment of accounts receivable.

11. Received utility bills in the amount of $400, to be paid next month.

12. Paid the monthly salaries of the two employees, totalling $6,000.

Instructions
(a) Prepare journal entries to record each of the events listed.

(b) Post the journal entries to T accounts.

(c) Prepare a trial balance as of May 31, 2008.

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