The Franklin Company recently started when owners invested $80,000 in the company; the company then had the following transactions/events:

May 1

Sold $5,000 of services to customers

May 1

Purchased $600 of supplies on account

May 1

Purchased equipment for $7,180, which is expected to be useful for 9 years at which time, it should be worth $700

May 1

Purchased a 6-month insurance policy for $600.

May 8

Paid suppliers $180 for purchases previously made on account

May 13

Received utility bill for $600; will send payment next month

May 31

Paid employee salaries for May totaled $4,800

May 31

Supplies on hand reported at $280

May 31

Sold services in advance to customers for $2,300

Required:

1. On your own paper (or in Word or Excel), create a accounting framework and record all of the necessary transactions for the month.
2. Prepare an income statement and balance sheet for the month.
3. Upload a picture of your paper (or a file if using Word or Excel).