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The following information relates to Lee Real Estate Agency during the first month of operations. May 1, 2018, the owner, Jack Lee, invests $40,000 in cash in starting a real estate office operation as a sole proprietorship.
Transactions during the remainder of the month are as follow:
Date Transactions
May 3: Purchased $500 of supplies on credit.
May 6: Purchased equipment for $9,000, paying $4,000 in cash and signed a 30-d $5,000, note payable.
May 11: Real estate commissions billed to clients amount to $4,000
May 13: Paid $800 in cash for the current month’s rent.
May 18: Paid $200 cash on account for supplies purchased on May 6.
May 21: Received a bill for $600 for advertising for the current month.
May 26: Paid $2,500 in cash for office salaries and wages.
May 27: Li withdrew $1,800 from the business for living expenses.
May 31: Received a check for $2,500 from a client in payment on account for commission billed on May 11.
REQUIRED:
Prepare journal entries to record each of transaction
Post the journal entries to ledger accounts
Prepare a trial balance as at May 31, 2018
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