Starting in May 2017, Nicole decided that she has everything she needs to open her doors to customers. To keep up with competition, Nicole has added items such as gift certificates and has started to advertise her company more and put things into place to keep her business going in the long term. Here is a sample of some transactions that occurred in the month of May at Nicole’s Getaway Spa. 

May 1 Paid $3,000 cash for an insurance policy that covers the period from June 1 until May 31 next year 

May 4 Ordered five new massage tables from Spa Supplies Unlimited for $250 each for future delivery 

May 7 Provided $860 of spa services to customers on account 

May 10 Purchased spa supplies for $800 on account to use at Nicole’s Getaway Spa 

May 13 Received a bill for $45 for running an advertisement in the newspaper in May; bill was paid in cash 

May 16 Paid one-quarter of the amount owed from May 10 

May 19 Sold $1,900 of gift certificates to customers for cash 

May 20 Obtained financing from the bank by signing a $5,000 note payable 

May 22 Received two of the massage tables ordered on May 4 and paid cash for the two tables 

May 25 Paid $500 cash for utility bills for services received and billed in May 

Required: 

For each of the transactions, prepare journal entries using the date of the transaction as the reference.