E3-1 Transactions using accrual accounting Obj 2 E3-2 Adjustment process Obj 3 SPREADSHEET Luv Care is owned and operated by Debbie Gonalez, the sole stockholder. During May 2011, Luv Care entered into the following transactions: a. Debbie Gonalez invested $20,000 in Luv Care in exchange for capital stock. b. Paid $7,200 on May 1 for an insurance premium on a 1-year policy. c. Purchased supplies on account, $1,200. d. Received fees of $32,500 during May. e. Paid expenses as follows: wages, $8,000; rent, $2,500; utilities, $1,000; and miscellaneous, $850. f. Paid dividends of $3,000. Record the preceding transactions using the integrated financial statement framework. After each transaction, you should enter a balance for each item. Using the data from Exercise 3-1, record the adjusting entries at the end of May to record the insurance expense and supplies expense. There were $650 of supplies on hand as of May 31. Identify the adjusting entry for insurance as (al) and supplies as (a2).