Question

Sheffield Services was formed on May 1, 2020. The following transactions took place during the first month. Three parts to the question?
1). Prepare journal entries to record each of the events listed. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2). Post the journal entries to T-accounts. (Post entries in the order of journal entries presented in the previous question.)

3). Prepare a trial balance as of May 31, 2020.

Transactions on May 1:
1.		Jay BradFord invested $41,000 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 $3,300 per month.
3.		Signed a 2-year rental agreement on a warehouse; paid $23,000 cash in advance for the first year.
4.		Purchased furniture and equipment costing $29,700. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
5.		Paid $1,600 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 $500 cash.
7.		Purchased more office supplies for $1,600 on account.
8.		Total revenues earned were $19,700—$8,700 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 $500, to be paid next month.
12.		Paid the monthly salaries of the two employees, totaling $6,600.

Prepare a trial balance as of May 31, 2020.

SHEFFIELD SERVICES Trial Balance                                                                       For the Year Ended May 31, 2020For the Quarter Ended May 31, 2020May 31, 2020
	Debit		Credit
	$		$
Totals	$		$

Answer 1

Journal Entries Account Title and Explaination Post. Date Debit Credit Ref. Cash 41,000.00 Jay, Capital (To record cash invested into business) 41,000.00 No Journal Entry at the time of Hiring Employees 2 Prepaid Rent 23,000.00 Cash 23,000.00 |(To record payment of Rent advance for one year) Furniture and Equipment 29,700.00 4 Cash 10,000.00 Accounts Payable 19,700.00 |(To record Furniture and Equipment purchased and cash |paid as part pаутеnt) Prepaid Insurance 1,600.00 Cash 1,600.00 (To record Cash paid for one year insurance policy)

Office Supplies 500.00 6. Cash 500.00 |(To record office supplies purchased) Office Supplies 2$ 1,600.00 Accounts Payable |(To record office supplies purchased on account) 1,600.00 Cash 8,700.00 Accounts Receivable 11,000.00 Service Revenue 19,700.00 |(To record Revenue through cash and on account) Accounts Payable 300.00 Cash 300.00 |(To record payment of payables) Cash 10 2,800.00 Accounts Receivable 2,800.00 (To record Collection of receivables)

Cash 2,800.00 10 2,800.00 Accounts Receivable (To record Collection of receivables) Utilities Expense 11 500.00 Utilities Payable |(To record accrued utilities expense) 500.00 Salaries Expense 6,600.00 12 Cash 6,600.00 |(To record salaries expense paid)