EXERCISE 3.10 Journalizing, Posting, and Preparing a Trial Balance Trafflet Enterprises incorporated on May 3, 2011. The company engaged in the following transac- tions during its first month of operations: May 3 Issued capital stock in exchange for $800,000 cash. May 4 Paid May office rent expense of $1,000. May 5 Purchased office supplies for $400 cash. The supplies will last for several months. May 15 Purchased office equipment for $8,000 on account. The entire amount is due June 15. May 18 Purchased a company car for $27,000. Paid $7,000 cash and issued a note payable for the remaining amount owed. May 20 Billed clients $32,000 on account. May 26 Declared a $5,000 dividend. The entire amount will be distributed to shareholders on June 26. May 29 Paid May utilities of $200. May 30 Received $30,000 from clients billed on May 20. May 31 Recorded and paid salary expense of $14,000. A partial list of the account titles used by the company includes: Cash Dividends Payable Accounts Receivable Dividends Office Supplies Capital Stock Office Equipment Client Revenue Vehicles Office Rent Expense Notes Payable Salary Expense Accounts Payable Utilities Expense a. Prepare journal entries, including explanations, for the above transactions. b. Post each entry to the appropriate ledger accounts (use the T account format illustrated in Exhibit 3-8 on page 108). c. Prepare a trial balance dated May 31, 2011. Assume accounts with zero balances are not included in the trial balance