During the first month of operations (May 2016), Spahr Music Corporation completed the following selected transactions:
a. The business received cash of $50,000 and a building with a fair value of $106,000. The corporation issued common stock to the stockholders.
b. Borrowed $63,000 from the bank; signed a note payable.
c. Paid $44,000 for music equipment.
d. Purchased supplies on account, $210.
e. Paid employees' salaries, $5,900.
f. Received $3,700 for music service performed for customers.
g. Performed service for customers on account, $13,100.
h. Paid $200 of the account payable created in transaction d.
i. Received a $600 bill for utilities expense that will be paid in the near future,
j. Received cash on account, $1,700.
k. Paid the following cash expenses: (1) rent, $1,200; (2) advertising, $300.
Requirements
1. Record each transaction directly in the T-accounts without using a journal. Use the letters to identify the transactions.
2. Prepare the trial balance of Spahr Music Corporation at May 31, 2016.