Reference no: EM132632510
Question - Crane Services was formed on May 1, 2020. The following transactions took place during the first month.
Transactions on May 1:
1. Jay BradFord invested $39,000 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 $2,500 per month.
3. Signed a 2-year rental agreement on a warehouse; paid $20,000 cash in advance for the first year.
4. Purchased furniture and equipment costing $28,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
5. Paid $1,500 cash for a one-year insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
6. Purchased basic office supplies for $400 cash.
7. Purchased more office supplies for $1,200 on account.
8. Total revenues earned were $18,000-$7,000 cash and $11,000 on account.
9. Paid $300 to suppliers for accounts payable due.
10. Received $2,800 from customers in payment of accounts receivable.
11. Received utility bills in the amount of $300, to be paid next month.
12. Paid the monthly salaries of the two employees, totaling $5,000.
Required - Prepare journal entries to record each of the events listed.