1. Hillsborough Services was formed on May 1, 2019. The following transactions took place during the first month.

Transactions on May 1.

1. Stockholders invested $50, 000 cash in exchange for common stock.

2. Hired two employees to work in the warehouse, They will each be paid a salary of $2800 per month.

3. Signed a 2-year rental agreement on a warehouse, paid $24,000 cash in advance for the first year.

4. Purchase furniture and equipment costing $ 28,000. A cash payment of $ 5000 was paid immediately; the remainder will be paid in 6 months.

5. Paid $, 640 cash for a one-year insurance policy on the furniture and equipment.

Transactions during the remainder of the month.

6, Purchase basic office supplies for $ 750 cash'

7. Purchase more office supplies for $1, 300 on account.

8. Total revenues earned were $ 18, 000- $6,000 cash and $12, 000 on account.

9. Paid $ 400 to suppliers for account payable due.

10. Received $ 3,200 from customers in payment of accounts receivable.

11. Received utility bills n the amount of $ 260, to be paid next month.

12. Paid the monthly salaries of the two employees, totaling $ 5,600.

INSTRUCTIONS:

(a). Prepared 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, 2019.