We have the following balance data about John Co. at the beginning of May 2020. All accounts have normal balance.

Cash	$15,000
Account Receivable	20,000
Prepaid insurance	1,200
Equipment	60,000
Accumulated Depreciation-Equipment	35,000
Account Payable	8,200
Salaries Payable	3,000
Note payable (Long term debt)	17,000
Capital Stock	20,000
Retained Earning	13,000

During May, 2020 the company has some transactions as follows:

1. Purchase merchandise on account from Frank Co., terms 3/15, n/30, FOB shipping point, $3,000.
2. Paid freight on purchase of May, 1, $200.

5. Returned $500 of damaged merchandise purchased on May 1, receiving credit from the seller.

9. Paid the premiums on property and casualty insurance policy, $ 600.

15. Paid for merchandise purchased on May, 1 with Frank Co.

19. Paid part-time clerk for two weeks salary, $ 700.

20. Sold merchandise for cash to ABC Co., FOB shipping point, $3,000 and paid freight of $150. The cost of merchandise sold was $2,000.

25. Refunded cash on sales made for cash, $600. The cost of merchandise returned was $400.
26. Purchased additional office equipment on account from Office Depot Co., $3,000.

30. Paid dividend of $1,000.

Adjustment data:

31. Depreciation of Equipment for May is $ 1000.

31. Insurance expired during May is $ 600

31. Accrued clerk salary on May 31 is $ 500.

Instructions:

1. Journalize each transaction.
2. Post the journal to the Ledger T-account.
3. Journalize and post the adjusting entries.
4. Prepare an adjusted trial balance.
5. Prepare a multiple step income statement, Retained earning statement and classified balance Sheet for the month of May.