The company performs adjusting entries monthly Closing entries are performed annually on May 31 During May, the corporation entered into the following transactions May 1 Issued 40,000 shares of capital stock in exchange for a total of $400,000 cash May 1 Purchased a piece of equipment to be used in the operations of the business for $300,000 that will assist with a more efficient production Paid $100,000 cash and issued a two year note payable for $200,000 The note plus all 24 months of accrued interest are due April 30, 2017 The interest rate on the note is 5 May 1 Paid $15,000 to SSR as three months advance rent on the warehouse used in daily manufacturing May 4 Paid salaries in May totaling $27,000 (Ignore payroll taxes ) May 8 Purchased office supplies (e g , copy paper, ink toner, pens, etc ) on account from Office Depot, $4,200 Payment due in 30 days May 15 Excluding the Wilmington General advance, fees earned during the first 15 days of May amounted to $95,100, of which $47,000 was received in cash The remaining amount will be customer purchases on account May 18 Purchased on account from Parts Plus, Inc , $1,700 in parts needed to repair a server for a local law firm (Debit an expense account ) Payment is due in 10 days May 23 Collected $22,000 of the accounts receivable recorded on May 15 May 26 Paid salaries in May totaling $27,000 (Ignore payroll taxes ) May 27 Paid the account payable to Parts Plus , $1,700 May 28 Declared a dividend of 10 cents per share, payable on June 15, 2015 May 29 Paid the May utilities in the amount of $985 May 31 Purchased a 24 month warranty insurance policy for $24,000 This policy protects the company against liability for defects and warranties for the computer equipment that is sold and leased The policy goes into effect on June 1, 2015 May 31 Paid monthly cable bill of 684 to Suddenlink May 31 Collected Sales earned during the second half of May, which amounted to $120,700 and of which $86,300 was received in cash The remaining amount is customer purchases on account Data for Adjusting Entries The advance payment of rent on May 1 covered a period of three months The annual interest rate on the note payable is 5 percent The machine purchased May 1, 2015 is being depreciated by the straight line method over a period of five years Office supplies on hand at May 31 are estimated at $440 Employee salaries earned by employees since the last payroll date (May 26) amounted to $9,642 at the month end Instructions Complete the following for this assignment Prepare an unadjusted trial balance Prepare the necessary adjusting entries for May Prepare an adjusted trial balance Prepare a balance sheet, an income statement, and a statement of retained earnings for the year ended May 31, 2015 Prepare closing entries

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The company performs adjusting entries monthly. Closing entries are performed annually on May 31. During May, the corporation entered into the following transactions: May 1:

The company performs adjusting entries monthly. Closing entries are performed annually on May 31.

During May, the corporation entered into the following transactions:

May 1: Issued 40,000 shares of capital stock in exchange for a total of $400,000 cash.
May 1: Purchased a piece of equipment to be used in the operations of the business for $300,000 that will assist with a more efficient production. Paid $100,000 cash and issued a two-year note payable for $200,000. The note plus all 24 months of accrued interest are due April 30, 2017. The interest rate on the note is 5%.
May 1: Paid $15,000 to SSR as three months advance rent on the warehouse used in daily manufacturing.
May 4: Paid salaries in May totaling $27,000. (Ignore payroll taxes.)
May 8: Purchased office supplies (e.g., copy paper, ink toner, pens, etc.) on account from Office Depot, $4,200. Payment due in 30 days.
May 15: Excluding the Wilmington General advance, fees earned during the first 15 days of May amounted to $95,100, of which $47,000 was received in cash. The remaining amount will be customer purchases on account.
May 18: Purchased on account from Parts Plus, Inc., $1,700 in parts needed to repair a server for a local law firm. (Debit an expense account.) Payment is due in 10 days.
May 23: Collected $22,000 of the accounts receivable recorded on May 15.
May 26: Paid salaries in May totaling $27,000. (Ignore payroll taxes.)
May 27: Paid the account payable to Parts Plus., $1,700.
May 28: Declared a dividend of 10 cents per share, payable on June 15, 2015.
May 29: Paid the May utilities in the amount of $985.
May 31: Purchased a 24-month warranty insurance policy for $24,000. This policy protects the company against liability for defects and warranties for the computer equipment that is sold and leased. The policy goes into effect on June 1, 2015.
May 31: Paid monthly cable bill of 684 to Suddenlink.
May 31: Collected Sales earned during the second half of May, which amounted to $120,700 and of which $86,300 was received in cash. The remaining amount is customer purchases on account.

Data for Adjusting Entries

The advance payment of rent on May 1 covered a period of three months.
The annual interest rate on the note payable is 5 percent.
The machine purchased May 1, 2015 is being depreciated by the straight-line method over a period of five years.
Office supplies on hand at May 31 are estimated at $440.
Employee salaries earned by employees since the last payroll date (May 26) amounted to $9,642 at the month end.

Instructions

Complete the following for this assignment:

Prepare an unadjusted trial balance.
Prepare the necessary adjusting entries for May.
Prepare an adjusted trial balance.
Prepare a balance sheet, an income statement, and a statement of retained earnings for the year ended May 31, 2015.
Prepare closing entries.