Mack Lamar decided to establish Mack studios as of May 1, 1999. During May, Mack Studios entered into the following transactions:

May 1 The following assets were received from Mack Lamar: cash, $13,100; accounts receivable,

$3,000; supplies, $1,800; and office equipment $12,500. There were no liabilities received by

Mack Studios from Mack Lamar.

Paid three months rent on a lease rental contract, $4,800.

Paid the premiums on property and casualty insurance policies, $1,800.

Received cash from clients as an advance payment for services to be provided, $5,000.

Purchased additional office supplies on account from Office Supplies Co. ., $2,000.

Received cash from clients on account, $1,800

Paid for TV advertisement, $120.

Paid Office Supplies Co. for part of the debt incurred on May 4, $1,200

Recorded services provided on account for the period May 1-12, $4,200.

Paid part-time Employee for two weeks salary, $750.

Recorded cash from cash clients for services provided during the period, May 1-16, $6,250.

Paid cash for supplies, $800.

Recorded services provided on account for the period 13-20, $2,100.

Recorded cash from cash clients for the period, May 17-24, $3,850.

Received cash from clients on account, $5,600.

Paid part-time receptionist for two weeks salary, $750.

Interviewed and hired another part-time receptionist at weekly salary of $375.

Paid electricity bill for May, $130.

Paid telephone bill for May, $200.

Recorded cash from cash customers for the period May 25-30, $3,050.

Recorded services provided on account for the remainder of May $1,500.

Mack Lamar withdrew $6,000 for personal use.

Required:

1. Prepare general journal entries for the transactions above.

2. Post your entries to the general ledger using a T format of accounts.

3. Prepare a trial balance

4. Prepare: (a) income statement, (b) retained earnings statement, and