On May, John began a new business, called Music Limited, a recording studio to be rented out to artists on an hourly or daily basis. The following transactions were completed by the business during May: 1 May Issued 2,000 shares in exchange for $400,000 cash. 2 May Purchased land and a building for $410,000, paying $100,000 cash and signing note payable for the balance. The land was considered to be worth $310,000 and the building $100,000 3 May Installed soundproofing throughout most of the building at a cost of $120,000 Paid $32,000 cash and agreed to pay the balance in 60 days. These costs are considered as costs of the building. 4 May Purchased office furnishings costing $18,000 and recording equipment costing $88,400 from Music Supplies. Paid $28,000 cash and issued a note payable on the balance. 15 May Borrowed $280,000 Hom a bank by signing a note payable. 20 May Billed customers for the rent of $20,000 charged to them related to the use of the studio in May, with $5,000 collected immediately and the rest on account. 25 May Paid the full amount of the liability arising from the purchases in land and building on 2 May and 3 May. 30 May Received from customers for the amount billed on 20 May. 31 May Paid salary of $50,000 to employees by issuing checks. 31 May Received a bill of electricity for $1,000. The bill will be settled in June. 31 May Declared dividend of $1,000 to be paid on 30 June Required (a) Journalize the transactions in May. The accounts used by the company are listed below. (14.5 marks) Cash Accounts Receivable Office Furnishings Recording Equipment Building Land Accounts Payable Notes Payable Dividend Payable Share Capital Dividend Studio Rent Revenue Utilities Expense Salary Expense (b) Post all journal entries in (a) to the ledger accounts using the T-account format. (14.5 marks) (e) Prepare a trial balance at 31 May. (No T-accounts required) (7 marks)