Tami Martin started a business she called Martin Realty. During May, she completed the transactions that follow:

May 2 Invested \(\$ 3,500\) in cash and antomobile having a \$12,000 fair value in the real estate agency.

2 Rented furnished office space and paid one month's rent, \(\$ 600\).

2 Paid the premium on an insurance policy giving one year's protection, \(\$ 996\).

3 Purchased office supplies for cash, \(\$ 210\).

13 Paid the salary of the office secretary for two weeks, \(\$ 670\).

19 Sold a building lot and collected a \(\$ 2,400\) commission on the sale.

27 Paid the salary of the office secretary for two weeks, \(\$ 670\).

31 Paid the May telephone bill, \(\$ 65\).

31 Paid for gas and oil used in the agency car during May, \(\$ 70\).

\section*{Required work for May}

1. Open these accounts: Cash; Prepaid Insurance; Office Supplies; Automobile; Accumulated Depreciation, Automobile; Salaries Payable; Tami Martin, Capital; Tami Martin, Withdrawals; Income Summary; Commissions Earned; Rent Expense; Salaries Expense; Gas, Oil, and Repairs Expense; Telephone Expense; Insurance Expense; Office Supplies Expense; and Depreciation Expense, Automobile.

2. Prepare and post journal entries to record the transactions.

3. Prepare an unadjusted trial balance on a work sheet form and complete the work sheet using the information that follows:

a. One month's insurance has expired.

b. An inventory shows \(\$ 165\) of unused office supplies remaining.

c. Estimated depreciation on the automobile, \(\$ 240\).

d. Earned but unpaid wages of the secretary, \(\$ 134\).

4. Prepare an income statement and a statement of changes in owner's equity for May, and prepare a May 31 classified balance sheet.

5. Journalize and post adjusting and closing entries.

6. Prepare a post-closing trial balance.

These transactions were completed by Tami Martin during June:

June 1 Paid the June rent on the office space, \(\$ 600\).

5 Sold a house and collected a \(\$ 7,275\) commission.

7 Tami Martin withdrew \(\$ 2,250\) from the business to pay personal expenses.

10 Paid the salary of the office secretary for two weeks, \(\$ 670\).

21 Purchased additional office supplies for cash, \(\$ 55\).

24 Paid the salary of the office secretary for two weeks, \(\$ 670\).

30 Paid the June telephone bill, \(\$ 60\).

30 Paid for gas and oil used in the agency car, \$75.

Required work for June 1. Prepare and post journal entries to record the transactions.

2. Prepare an unadjusted trial balance on a work sheet form and complete the work sheet using the information that follows:

a. One month's insurance has expired.

b. An office supplies inventory shows \(\$ 180\) of unused office supplies.

c. Estimated depreciation on the automobile, \(\$ 240\).

d. Earned but unrecorded salary of the secretary, \$268.
3. Prepare an income statement and a statement of changes in owner's equity for June, and prepare a June 30 classified balance sheet.
4. Journalize and post adjusting and closing entries.
5. Prepare a post-closing trial balance.