Harold Long started a business in May 20-- called Harold’s Home Repair. Long hired a part-time college student as an assistant. Long has decided to use the following accounts for recording transactions:

Assets Owner’s Equity

Cash Harold Long, Capital

Accounts Receivable Harold Long, 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, $20,000.

(b) Purchased a used van for cash, $7,000.

(c) Purchased equipment on account, $5,000.

(d) Received cash for services rendered, $6,000.

(e) Paid cash on account owed from transaction (c), $2,000.

(f) Paid rent for the month, $900.

(g) Paid telephone bill, $200.

(h) Earned revenue on account, $4,000.

(i) Purchased office supplies for cash, $120.

(j) Paid wages to student, $600.

(k) Purchased a one-year insurance policy, $1,200.

(l) Received cash from services performed in transaction (h), $3,000.

(m) Paid cash for gas and oil expense on the van, $160.

(n) Purchased additional equipment for $3,000, paying $1,000 cash and spreading the remaining payments over the next 10 months.

(o) Earned service fees for the remainder of the month of $3,200: $1,800 in cash and $1,400 on account.

(p) Withdrew cash at the end of the month, $2,800.

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 trial balance as of May 31, 20--.