Exercise #2 Following are the May transactions for Hero Company: May 1 Stockholders invested $20,000 cash in exchange for common stock. 2 Paid $1,800 cash for a one-year insurance policy. 3 Purchased $1,500 of supplies on account from Vincent Supplies. 7 Paid office rent of $900 cash for the month. 9 Purchased $12,000 equipment; paid $2,000 cash and signed a promissory note payable for the balance. 11 Performed $2,800 of services and billed the client. 12 Received a $3,500 cash advance on a management consulting engagement to be performed in June 17 Performed $1,200 of services and received cash. 24 Received $650 cash on account from previously billed customers. 29 Declared and paid $2,400 cash dividends to stockholders. 30 Paid employees' $2,000 sularies for the month. 31 Made a $600 cash payment on accounts payable. Instructions (a) Journalize the transactions in the given general journal. (b) Post to the ledger accounts in the given general ledger. (c) Prepare a trial balance on May 31, 2020 on the given sheet. General Journal Page 1 Account Titles Dehit Exercise #2 Cash Account No 101 Date Explanation Rer Debit Credit Balance Accounts Receivable Account No. 112 Date Explanation Ref. Debit Credit Balance Supplies Account No. 126 Date Explanation Ref. Debit Credit Balance Account No. 128 Prepaid Insurance Date Explanation Ref. Debit Credit Balance Equipment Account No 150 Date Explanation Ref Debit Credit Balance Account No. 201 Accounts Payable Date Explanation Ref. Debit Credit Balance Notes Payable Account No. 202 Date Explanation Ref. Debit Credit Balance Unearned Service Revenue Date Explanation Account No. Credit 209 Balance Ref Debit Common Stock Date Explanation Account No. Credit 301 Balance Ref. Debit Retained Earnings Date Explanation Account No. Credit 302 Balance Ref. Debit Dividends Declared Date Explanation Account No. Credit 303 Balance Ref. Debit Service Revenue Date Explanation Account No. Credit 400 Balance Ref. Debit Salaries Expense Date Explanation Ref. Debit Account No. Credit 526 Balance Rent Expense Date 529 Balance Explanation Account No. Credit Ref. Debit Exercise #2 (c) Hero Company Trial Balance May 31, 2020 DR CR Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accounts Payable Notes Payable Unearned Service Revenue Common Stock Retained Earnings Dividends Declared Service Revenue Salaries Expense Rent Expense Totals