Jethro Company, a retailer, had the following account balances as of April 30, 2012:

During May, the company completed the following transactions.
May 3 Paid one-half of 4/30/12 accounts payable.
4 Purchased inventory on account, $5,000.
6 Collected all of 4/30/12 accounts receivable.
7 Sold inventory costing $3,850 for $3,000 cash and $2,000 on account.
8 Sold one-half of the land for $6,500, receiving $4,000 cash plus a note for $2,500.
15 Paid installment of $2,500 on notes payable (entire amount reduces the liability account).
21 Issued additional capital stock for $1,000 cash.
23 Sold inventory costing $2,000 for $3,750 cash.
25 Paid salaries of $1,000.
26 Paid rent of $250.
29 Purchased desk for $250 cash.
Required:
1. Prepare the journal entry for each transaction.
2. Set up T-accounts with the proper account balances at April 30, 2012, and post the entries to the T-accounts.
3. Prepare a trial balance as of May 31,2012.

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Debits Credits Cash Inventory Land . Building . FurnitureO. Notes Payable ....S 5,050 2,450 8,000 13,000 12,000 2,000 $12,500 6,000 15,000 9,000 $42,500 Capital Stock Retained Earnings.. Totals 42,500