Sunland Services was formed on May The following transactions took place during the first month amounts in thousands
Transactions on May :
Anthony Walker invested cash in the company in exchange for ordinary shares.
Hired two employees to work in the warehouse. They will each be paid a salary of per month.
Signed a year rental agreement on a warehouse; paid cash in advance for the first year.
Purchased furniture and equipment costing A cash payment of was made immediately; the remainder will be paid in months.
Paid cash for a oneyear insurance policy on the furniture and equipment.
Transactions during the remainder of the month:
Purchased basic office supplies for cash.
Purchased more office supplies for on account.
Total revenues earned were cash and on account.
Paid to suppliers for accounts payable due.
Received from customers in payment of accounts receivable.
Received utility bills in the amount of to be paid next month.
Paid the monthly salaries of the
two employees, totaling
Prepare journal entries to record each of the events listed.
