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

Transactions on May 1:

1. Ronald Slocombe invested \($100,000\) cash in the company, as its sole owner.

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, totaling \($6,000.\)

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.