On May 1, 2011, Conrad Sayer opened Conrad%u2019s Repair Service. During the month, he completed the following transactions for the company:

May 1 Began business by depositing $5,000 in a bank account in the name of the company.

1 Paid the rent for the store for current month, $425.

1 Paid the premium on a one-year insurance policy, $480.

2 Purchased repair equipment from Chmura Company, $4,200. Terms were $600 down and $300 per month for one year. First payment is due June 1.

5 Purchased repair supplies from Brown Company on credit, $468.

8 Paid cash for an advertisement in a local newspaper, $60.

15 Received cash repair revenue for the first half of the month, $400.

21 Paid Brown Company on account, $225.

31 Received cash repair revenue for the last half of May, $975.

31 Made a withdrawal, $300. Required for May

1. Prepare journal entries to record the May transactions.

2. Open the following accounts: Cash (111); Prepaid Insurance (117); Repair Supplies (119); Repair Equipment (144); Accumulated Depreciation%u2013Repair Equipment (145); Accounts Payable (212); C. Sayer, Capital (311); C. Sayer, Withdrawals (313); Income Summary (314); Repair Revenue (411); Store Rent Expense (511); Advertising Expense (512); Insurance Expense (513); Repair Supplies Expense (514); and Depreciation Expense%u2013Repair Equipment (515). Post the May journal entries to the ledger

3. Using the following information, record adjusting entries in the general journal and post to the ledger accounts: a. One month%u2019s insurance has expired. b. The remaining inventory of unused repair supplies is $169. c. The estimated depreciation on repair equipment is $70.

4. From the accounts in the ledger, prepare an adjusted trial balance. (Note:Normally, a trial balance is prepared before adjustments but is omitted here to save time.)

5. From the adjusted trial balance, prepare an income statement, a statement of owner%u2019s equity, and a balance sheet for May.

6. Prepare and post closing entries.

7. Prepare a post-closing trial balance.

During June, Conrad Sayer completed these transactions for Conrad%u2019s Repair Service:

June 1 Paid the monthly rent, $425.

1 Made the monthly payment to Chmura Company, $300.

6 Purchased additional repair supplies on credit from Brown Com-pany, $863.

15 Received cash repair revenue for the first half of the month, $914.

20 Paid cash for an advertisement in the local newspaper, $60.

23 Paid Brown Company on account, $600.

30 Received cash repair revenue for the last half of the month, $817.

30 Recorded a withdrawal by owner, $300.

8. Prepare and post journal entries to record the June transactions.

9. Using the following information, record adjusting entries in the general jour-nal and post to the ledger accounts:

a. One month%u2019s insurance has expired.

b. The inventory of unused repair supplies is $413.

c. The estimated depreciation on repair equipment is $70.

10. From the accounts in the ledger, prepare an adjusted trial balance.

11. From the adjusted trial balance, prepare the June income statement, state-ment of owner%u2019s equity, and balance sheet.

12. Prepare and post closing entries.

13. Prepare a post-closing trial balance.