Paws and Hoofs Clinic, Inc., needs to record its business transactions in the accounting records. The company was engaged in the following economic events during May 2014 May 1 Stockholders invested $20,000 in cash to form Paws and Hoofs Clinic, Inc. 2 Made an agreement to provide $6,000 in services over the next year to Quarter Horse Stables. 3 Paid $600 in advance for two months' rent of an office. 9 Purchased medical supplies for $400 in cash. 12 Purchased $4,000 of equipment on credit; made a 25 percent down payment 15 Provided veterinary services for a fee of $350 on credit. 18 Made a payment of $500 on the equipment purchased on May 12. 27 Paid a utility bill of $140. 1. Identify the company's business transactions, and prepare journal entries to record them. 2. Post the transactions to the following T accounts: Cash, Accounts Receivable, Medical Supplies, Prepaid Rent Equipment, Accounts Payable, Common Stock: Veterinary Fees Earned, and Utilities Expense. 3. Prepare a trial balance for the month of May. 4 How does the transaction of May 15 relate to recognition and cash flows? Mpw do the transactions of May 9 and May 28 relate to classification? 4. Prepare Basic Financial statements