Question: Hillsborough Services was formed on May 1 2015 The following

Hillsborough Services was formed on May 1, 2015. The following transactions took place during the first month.
Transactions on May 1:
1. Stockholders invested $50,000 cash in exchange for common stock.
2. Hired two employees to work in the warehouse. They will each be paid a salary of $2,800 per month.
3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.
4. Purchased furniture and equipment costing $28,000. A cash payment of $5,000 was made immediately; the remainder will be paid in 6 months.
5. Paid $2,640 cash for a one-year insurance policy on the furniture and equipment. Transactions during the remainder of the month:
6. Purchased basic office supplies for $750 cash.
7. Purchased more office supplies for $1,300 on account.
8. Total revenues were $18,000—$6,000 cash and $12,000 on account.
9. Paid $400 to suppliers for accounts payable due.
10. Received $3,200 from customers in payment of accounts receivable.
11. Received utility bills in the amount of $260, to be paid next month.
12. Paid the monthly salaries of the two employees, totaling $5,600.

(a) Prepare journal entries to record each of the events listed. (Omit explanations.)
(b) Post the journal entries to T-accounts.
(c) Prepare a trial balance as of May 31, 2015.

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  • CreatedFebruary 17, 2014
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