Kochi Services was formed on May 1, 2025. The following transactions took place during the first month (amounts in thousands).

Transactions on May 1:

1. Rahul Shah invested ₹40,000 cash in the company in exchange for ordinary shares.

2. Hired two employees to work in the warehouse. They will each be paid a salary of ₹3,050 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 ₹30,000. A cash payment of ₹10,000 was made immediately; the remainder will be paid in 6 months.

5. Paid ₹1,800 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 ₹420 cash.

7. Purchased more office supplies for ₹1,500 on account.

8. Total revenues earned were ₹20,000–₹8,000 cash and ₹12,000 on account.

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

10. Received ₹3,000 from customers in payment of accounts receivable.

11. Received utility bills in the amount of ₹380, to be paid next month.

12. Paid the monthly salaries of the two employees, totaling ₹6,100.

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, 2025.