Step 1: Daily Transactions Your first month was quite busy. Over the month of May, the following transactions occurred. 1st Paid rent for the month with ck# 2565 for $1,200. - 1st Purchased equipment for $20,000. $5,000 was paid with ck# 2566. The remainder was paid with a note that was financed for 3 years at 8% interest with First Bank that is due on the 1st day of each month starting in June. 5th Purchased supplies for $500 on account with Adco Inc. 8th Provided services on account to Charlie Jones, Invoice 182, $2,000. 10th Received cash on account from Jennifer Lord in the amount of - $1,100. 12th Paid utility bills of $320 with ck# 2567. 15th Paid the prior month's payroll liabilities for federal income tax, social security tax, and Medicare tax with ck# 2568 (Hint: amounts paid are the beginning balances for these amounts). 18th Provided services for cash for $10,000. - 20th-Paid on accounts payable for Yarbrough's with ck# 2569 for $325. 25th-Provided services on account to Jennifer Lord, Invoice 183, $500. 28th-Paid for advertising for the month with ck# 2570 for $250. 31st Provided services for cash for $3,000. Step 2: Payroll Employees are paid once a month on the last day of the month. The payroll totals for this month are as follows: Gross Pay $8,972.00 Social Security $538.32 Medicare $134.58 Federal Income Tax $927.00 Federal Unemployment Tax $31.78 State Unemployment Tax $214.49 The following checks are written for each employee's monthly paycheck. The check number and net pay are listed below for each employee. Check #2571 to Kelly Dillavou for $4,078.00 Check #2572 to Jack Strickland for $1.249.60 Check #2573 to You for $2,044.50 Record the payroll and the payroll tax expense for the month of May. Step 3: Bank Reconciliation Prepare a bank reconciliation as of May 31. You have been given last month's bank reconciliation, a list of May deposits and checks, and the May bank statement in the supplemental file. Step 4: Trial Balance Prepare an unadjusted trial balance. After making adjusting entries, you can then extend it to become an adjusted trial balance and use it to assist in preparing the financial statements