Problem #1

JFK Corporation provides video recording service for various businesses. The company started business early in April 2013.

The following is the balance sheet of the company as of April 30, 2013:

JFK Corporation
Balance Sheet
April 30, 2013*
Assets		Liabilities
Cash	$15,000	Taxes payable	$8,000
Accounts receivable	3,000	Notes payable	32,000
Stationery	700	Total Liabilities	$40,000
Land	80,000
Building	60,000	Owners Equity
Video Recording Equipment	40,000	Capital Stock	140,000
		Retained Earnings	18,700
		Total Owners Equity	$158,700
Total Assets	$198,700	Total Liabilities and Owners Equity	$198,700

*Additional information:

The total amount of accounts receivable the company had as of April 30, is to be collected on June 15, 2013;

The total amount of taxes payable the company had as of April 30, is to be paid on July 31, 2013;

The total amount of notes payable the company had as of April 30, is to be paid on December 31, 2013.

JFK Co. had the following transactions during the month of May, 2013:

1	02.05	Paid office rent in the amount of $3,600 for May, June, and July 2013;
2	07.05	Purchased stationery for $300 on credit. This amount is to be paid by October 31, 2013;
3	10.05	Provided video recording service to Emerald Co. for $18,000, for cash.
4	12.05	Purchased office furniture for $12,000. $2,000 paid immediately, the remaining balance is to be paid by December 31, 2013;
5	17.05	Collected $4,200 from Gemma Inc. for the services to be provided in June 2013;
6	20.05	Sold a piece of video-recording equipment, which was not used, for $500. This amount is to be collected by August 5, 2013;
7	25.05	Signed a contract with Zeta Co to provide marketing service in the amount of $6,000 in June 2013
8	31.05	Paid salaries of employees for May 2013 in the amount of $9,000;
9	31.05	Received $250 bill for utilities for May to be paid by June 5, 2013.

Required:

1. Prepare journal entries in the books of JFC Co. for May 2013;

2. Prepare the Unadjusted Trial Balance of JFC Co, including the effect of May 2013 transactions.

Show all supporting calculations where necessary!