Reference no: EM132026943
Question - Santa Ana Services was formed on May 1, 2014. The following transactions took place during the first month.
Transactions on May 1:
1. Don Humes invested $40,400 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 $2,540 per month.
3. Signed a 2-year rental agreement on a warehouse; paid $25,900 cash in advance for the first year.
4. Purchased furniture and equipment costing $28,850. A cash payment of $10,200 was made immediately; the remainder will be paid in 6 months.
5. Paid $1,910 cash for a one-year insurance policy on the furniture and equipment.
6. Purchased basic office supplies for $440 cash.
7. Purchased more office supplies for $1,590 on account.
8. Total revenues earned were $18,650-$7,050 cash and $11,600 on account.
9. Paid $380 to suppliers for accounts payable due.
10. Received $3,090 from customers in payment of accounts receivable.
11. Received utility bills in the amount of $390, to be paid next month.
12. Paid the monthly salaries of the two employees, totalling $5,080.
Prepare journal entries to record each of the events listed.