Downtown Company, a retailer, had the following account balances as of April 30, 2003: Cashiqieed jacna arnt at citar ubssatan) Seth ant tect om ra eieaa ne SRD PPM Bn boat 5 $10,100 ACCOUNnTSIRECEIN ADIGA: rAtetamne deta psa cecesin ak re uetels | ak Scone 4,900 [VENCTOEV wie e8 tong isk: bene eed s Goieg nan erty A ndeeds, Eyticde\. « aBea scan % 16,000 Latin ase Patent ei ya its ei ee ee ee Ae ae 26,000 Bulli Ginn cna babsys pis we bevetarconce. cumut Sip ayeyae RENE sithmpe + 6 Gods cuelecn 24,000 ULMITURG rere een ded iene A tinog atts crs bey cone ACL ea cae ie ees a ge rie 4,000 NotessRavaloleiort ae tica A onthe yin Msininun oraechtastava ae emanate hans cease $25,000 ACCOUNtSHRAaVab|lOpmcn: ike wieke CaeGre rac me se yrieae wield cash alice eee ae 12,000 CapitalsStockae seb crtacetaeceemre siore Racine eye cere nee an 30,000 ae EEE Seiwa’ Reta nedreaniin G Samemny cme wre sea sme key skee cm nee keane soe ieee tee 18,000 = vein ; TOtAIS ieee rer eet acetate ra acne ne, ces enh REE are oa tt A $85,000 $85,000 During May, the company completed the following transactions. May 3 Paid one-half of 4/30/03 accounts payable. 6 Collected all of 4/30/03 accounts receivable. 7 Sold inventory costing $7,700 for $6,000 cash and $4,000 on account.

May 8 Sold one-half of the land for $13,000, receiving $8,000 cash plus a note for $5,000. 10 Purchased inventory on account, $10,000. 15 Paid installment of $5,000 on notes payable (entire amount reduces the liability account). 21 Issued additional capital stock for $2,000 cash. 23 Sold inventory costing $4,000 for $7,500 cash. 25 Paid salaries of $2,000. 26 Paid rent of $500. 29 Purchased desk for $500 cash. 1. Prepare the journal entry for each transaction. Set up T-accounts with the proper account balances at April 30, 2003, and post the entries to the T-accounts. 3. Prepare a trial balance as of May 31, 2003.