Prepare the journal entries

TRANSACTIONS Drum, Inc. is a computer software consulting firm. The company also sells popular business computer software to its clients. the month of May, the following transactions occured. May 1 May 1 Paid in advance to Sug Realty $1,600 for 4 months rent. Borrowed $10,000 from Bank of America. The note has an interest rate of12% and a 10 month term. Rendered S8000 in consulting services for Harper, Inc., Received a 12% note with a term of 30 days Purchased on credit $500 in office supplies from Apex Corp. Purchased office equipment from Hunter, Inc. for $2.,000. The company paid $500 down and will pay the balance in the future. Performed $5 500 in consultin the company for the balance. May 1 May 2 May 3 May 4 g services for Atkins Enterprise, receiving $1 500 and billed May 5 Paid Tre Twiggs, your employee, $800 for one week of services. May 5 Issued 2,000 shares of $3 par common stock for $9 per share. Received $1,200 in advance from Drum, Inc. for consulting services to be rendered during the month of June. May 7 May 8 Received $1,000 from Atkins Enterprise as payment on its account. May 9 Paid the balance due to Hunter, Inc. May 10 Paid Tallahassee Democrat $200 for an ad that appeared in the local newspaper May 10Declared cash dividends of $3,000 May 10Sold office equipment that cost $8,000 (accumulated depreciation $5,000) The company received S1,000 from the sale of the equipment. May 11 Purchased from Johnson software packages (inventory) for $15,000 cash. May 12 Some of the merchandise purchased from Johnson was damaged & S1 500 of its money was refunded May 13 Wrote off $4,000 in customer accounts. The company uses the allowance method. May 13 Purchased computer software from Drum for $20,000, terms 3/10, net/30. May 18 Paid the balance due to Drum within 10 days May 19 Sold software to Lowe for $4,000, terms 2/10, net 30. Cost of software, $2,000. May 20Lowe returned $1 ,000 of software costing $500. May 21 Lowe paid its account balance within the discount period. May 21 Reinstated a customer 's $3,000 account balance that had been written off as uncollectible. The customer paid the $3,000 amount May 22 Paid freight charges to ship the goods sold to Lowe, $300. May 22 Paid the cash dividend declared on May 10. May 23 Sold computer software for $50,000 cash. Cost of merchandise, $22,000 May 24 Granted $1,000 in sales allowance for damaged goods, refunding the customer its money May 31 Collected the May I note received from Harper, Inc. including interest