1. On May 1, 2022, You form Universal Services Ltd ("USL"). You contribute $5,000 in cash and receive 100 shares of stock in USL.

2. On May 1, 2022, USL signs a 6 month office lease and pays $3,000 in cash in advance for the lease.

3. On May 1, 2022, USL purchases office equipment with a useful life of 3 years (36 months) for $360 in cash.

4. On May 2, 2022, USL performs $2,000 in services for customers, receiving $1,000 in cash and $1,000 in accounts receivable.

5. On May 3, 2022, USL purchases $100 in office supplies for cash.

6. On May 4, 2022, USL receives $1,000 in cash from customers for services to be performed in the future.

7. On May 30, 2022, USL performs $500 of the services for the customers who made the deposit on May 4.

8. On May 31, 2022, USL takes a physical count of its supply inventory and determines that $50 in supplies remain in stock. (Make this adjustment before preparing the trial balance in requirement #3, below.)

Required:

1. Prepare the journal entries to record the above transactions.

2. Prepare T-accounts and post the journal entries to the T-accounts for each transaction.

3. Prepare an unadjusted trial balance for USL as of May 31, 2022.

Extra credit: (20 points) (This is optional, but might be helpful for you.)

4. Prepare an adjusted trial balance, making the adjustments for rent expense and depreciation. Please show the journal entries for the adjustments first, the posting to the T-accounts for the adjustments, and then show the adjusted trial balance.

Extra, extra credit: (10 points) (This is also optional, but would demonstrate mastery of the subject.)

5. Prepare the income statement for USL for the month ending May 31, 2022.