May 1:Issued 40,000 shares of capital stock in exchange for a total of $400,000 cash.

May 1:Purchased a piece of equipment to be used in the operations of the business for $300,000 that will assist with a more efficient production. Paid $100,000 cash and issued a two-year note payable for $200,000. The note plus all 24 months of accrued interest are due April 30, 2017. The interest rate on the note is 5%.

May 1:Paid $15,000 to SSR as three months' advance rent on the warehouse used in daily manufacturing.

May 4:Paid salaries in May totaling $27,000. (Ignore payroll taxes.)

May 8:Purchased office supplies (e.g., copy paper, ink toner, pens, etc.) on account from Office Depot, $4,200. Payment due in 30 days.

May 15:Excluding the Wilmington General advance, fees earned during the first 15 days of May amounted to $95,100, of which $47,000 was received in cash. The remaining amount will be customer purchases on account.

May 18:Purchased on account from Parts Plus, Inc., $1,700 in parts needed to repair a server for a local law firm. (Debit an expense account.) Payment is due in 10 days.

May 23:Collected $22,000 of the accounts receivable recorded on May 15.

May 26:Paid salaries in May totaling $27,000. (Ignore payroll taxes.)

May 27:Paid the account payable to Parts Plus., $1,700.

May 28:Declared a dividend of 10 cents per share, payable on June 15, 2015.

May 29:Paid the May utilities in the amount of $985.

May 31:Purchased a 24-month warranty insurance policy for $24,000. This policy protects the company against liability for defects and warranties for the computer equipment that is sold and leased. The policy goes into effect on June 1, 2015.

May 31:Paid monthly cable bill of 684 to Suddenlink.

May 31:Collected Sales earned during the second half of May, which amounted to $120,700 and of which $86,300 was received in cash. The remaining amount is customer purchases on account.

MAY TRANSACTIONS Debit Credit 5/1/19 JE01 CASH $400,000.00 CAPITAL STOCK $400,000.00 5/1/19 JE02 EQUIPMENT $300,000.00 INTEREST EXPENSE $10,000.00 CASH $100,000.00 NOTE PAYABLE $200,000.00 INTEREST PAYBLE $10,000.00 5/1/19 JE03 PREPAID RENT $15,000.00 CASH $15,000.00 5/4/19 JE04 SALARY EXPENSE $27,000.00 SALARY PAYABLE $27,000.00 5/8/19 JE05 OFFICE SUPPLIES $4,200.00 A/P $4,200.00 5/15/19 JE06 CASH $47,000.00 REVENUE $47,000.00 A/R $48,100.00 REVENUE $48,100.00 5/18/19 JE07 REPAIR EXPENCE $1,700.00 A/P $1,700.00 5/15/19 JE08 CASH $22,000.00 A/R $22,000.00 5/26/19 JE09 SALARY EXPENSE $27,000.00 SALARY PAYABLE $27,000.00 5/27/19 JE10 A/P $1,700.00 CASH $1,700.00 5/28/19 JE11 RETAINED EARNINGS $4,000.00 DIVIDENDS PAYABLE $4,000.00 5/29/19 JE12 UTILITIES EXPENSE $985.00 CASH $985.00 5/31/19 JE13 UNEXPIRED INSURANCE $24,000.00 CASH $24,000.00 5/31/19 JE14 CABLE EXPENSE $684.00 CASH $684.00 5/31/19 JE15 CASH $86,300.00 REVENUE $86,300.00 A/R $34,400.00 REVENUE $34,400.00 $1,054,069.00 $1,054,069.00