Wilhelm Kohl started a business in May 20-- called Kohl’s Home Repair. Kohl hired a part-time college student as an assistant.

Kohl has decided to use the following accounts for recording transactions:

Assets Owner’s Equity

Cash Wilhelm Kohl. Capital

Accounts Receivable Wilhelm Kohl, Drawing

Office Supplies Revenue

Prepaid Insurance Service Fees

Equipment Expenses

Van Rent Expense

Liabilities Wages Expense

Accounts Payable Telephone Expense

Gas and Oil Expense

The following transactions occurred during May:

(a) Invested cash in the business, $25,000.

(b) Purchased a used van for cash, $6,000.

(c) Purchased equipment on account, $4,000.

(d) Received cash for services rendered, $7,500.

(e) Paid cash on account owed from transaction (c), $2,300.

(f) Paid sent for the month, $850.

(g) Paid telephone bill, $230.

(h) Earned revenue on account, $4,500.

(i) Purchased office supplies for cash, $160.

(j) Paid wages to an assistant, $800.

(k) Purchased a one-year insurance policy, $1,100.

(l) Received cash from services performed in transaction (h), $3,400.

(m) Paid cash for gas and oil expense on the van, $155.

(n) Purchased additional equipment for $4,200, paying $1,500 cash and spreading the remaining payments over the next 10 months.

(o) Earned service fees for the remainder of the month of $3,500: $1,900 in cash and $1,600 on account.

(p) Withdrew cash at die end of the month, $2,900.

Required

1. Enter the transactions in T accounts, identifying each transaction with its corresponding letter.

2. Foot and balance the accounts where necessary.

3. Prepare a mal balance as of May 31, 20—.