The following is a list of Company transactions for the month of May.

Required:

a. Prepare journal entries for each of these transactions. (You may omit explanations)

b. Identify the element or elements associated with each journal entry.

May 1 The Company sells $25,000 of inventory to customer for $40,000, of which $20,000 is collected in cash and the rest is billed to the customer.

May 3 The Company pays salaries of $4,500 that had previously been accrued at the end of April.

May 12 The Company's Board of Directors declares a dividend of $5,000 to be paid in 2 months.

May 25 The Company buys a computer on account for $3,500

May 31 The market value of the Company's investment in the bonds of XYZ Corporation, classified as available for sale, increased by $10,000