Lily Services was formed on May 1, 2020. The following transactions took place during the first month. Transactions on May 1: 1. Jay BradFord invested $40,000 cash in the company, as its sole owner. 2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,500 per month. 3. 4. 5. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year. Purchased furniture and equipment costing $30,900. A cash payment of $10,000 was made immediately; the remainder wil Paid $1,900 cash for a one-year insurance policy on the furniture and equipment. Transactions during the remainder of the month: 6. 7. 8. 9. 10. 11. 12. Purchased basic office supplies for $500 cash. Purchased more office supplies for $1,400 on account. Total revenues earned were $20,900-$8,900 cash and $12,000 on account. Paid $400 to suppliers for accounts payable due. Received $3,000 from customers in payment of accounts receivable. Received utility bills in the amount of $400, to be paid next month. Paid the monthly salaries of the two employees, totaling $7,000.