Unifying Concepts: Journal Entries, T-Accounts, Trial Balance Jethro Company, a retailer, had the following account balances as of April 30, 2009:

During May, the company completed the following transactions.
May 3 Paid one-half of 4/30/09 accounts payable.
4 Purchased inventory on account, $5,000.
6 Collected all of 4/30/09 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, 2009, and post the entries to the T-accounts.
3. Prepare a trial balance as of May 31, 2009.

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Cash Accounts Receivable Inventory Land $ 5,050 2,450 8,000 13,000 Building 12,000 Furniture 2,000 Notes Payable $12,500 Accounts Payable 6,000 Capital Stock 15,000 Retained Earnings 9,000 Totals $42,500 $42,500