Hillsborough Services was formed on May 1, 2015. The following transactions took place during the first month.

Transactions on May 1:

1. Stockholders invested $50,000 cash in exchange for common stock.

2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,800 per month.

3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.

4. Purchased furniture and equipment costing $28,000. A cash payment of $5,000 was made immediately; the remainder will be paid in 6 months.

5. Paid $2,640 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 $750 cash.

7. Purchased more office supplies for $1,300 on account.

8. Total revenues were $18,000—$6,000 cash and $12,000 on account.

9. Paid $400 to suppliers for accounts payable due.

10. Received $3,200 from customers in payment of accounts receivable.

11. Received utility bills in the amount of $260, to be paid next month.

12. Paid the monthly salaries of the two employees, totaling $5,600.

Instructions

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

(b) Post the journal entries to T-accounts.

(c) Prepare a trial balance as of May 31, 2015.