P$2\mathrm{.}3$A $($LO $1,2,3,4)$ Maquoketa Services was formed on May $1,2020.$ The following transactions took place during the first month.Transactions:

$1.$ Jay Bradford invested $$40,000$ cash in the company, as its sole owner.

$2.$ Hired two employees to work in the warehouse. They will each be paid a salary of $$3,050$ per month.

$3.$ Signed a $2-$year rental agreement on a warehouse; paid $$24,000$ cash in advance for the first year.

$4.$ Purchased furniture and equipment costing $$30,000.$ A cash payment of $$10,000$ was made immediately; the remainder will be paid in $6$ months.

$5.$ Paid $$1,800$ cash for a one$-$year insurance policy on the furniture and equipment. $6.$ Purchased basic office supplies for $$420$ cash.

$7.$ Purchased more office supplies for $$1,500$ on account.

$8.$ Total revenues earned were $$20,000$$$8,000$ cash and $$12,000$ on account.

$9.$ Paid $$400$ to suppliers for accounts payable due.

$10.$ Received $$3,000$ from customers in payment of accounts receivable.

$11.$ Received utility bills in the amount of $$380,$ to be paid next month.

$12.$ Paid the monthly salaries of the two employees, totaling $$6,100.$Instructions$-$ Use the excel working papers

The company uses the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accounts Payable, Owners Capital, Service Revenue, Salaries and Wages Expense and Utilities Expense.

Instructions: a$.$ Prepare journal entries to record each of the events listed. $($Use number of transaction as the date.$)$

b$.$ Post the journal entries to T$-$accounts. Put a check mark in the reference column when you post the transactions, since there are no account numbers given.

c$.$ Prepare a trial balance as of May $31,2020.$