On May 1, B. Bangle opened Self-Wash Laundry. His accountant listed the following chart of accounts:

 

The following transactions were completed during May:

a. Bangle deposited $35,000 in a bank account in the name of the business.

b. Bought chairs and tables (Furniture and Fixtures), paying cash, $1,870, Ck. No. 1000.

c. Bought supplies on account from Barnes Supply Company, $225.

d. Paid the rent for the current month, $875, Ck. No. 1001.

e. Bought washing machines and dryers (Equipment) from Lara Equipment Company, $12,500, paying $3,600 in cash and placing the balance on account, Ck. No. 1002.

f. Sold services for cash for the first half of the month, $1,925.

g. Bought insurance for one year, $1,560, Ck. No. 1003.

h. Paid on account to Lara Equipment Company, $1,800, Ck. No. 1004.

i. Received and paid electric bill, $285, Ck. No. 1005.

j. Sold services for cash for the second half of the month, $1,835.

k. Paid wages to an employee, $940, Ck. No. 1006.

l. Bangle withdrew cash for his personal use, $800, Ck. No. 1007.

m. Paid on account to Barnes Supply Company, $225, Ck. No. 1008.

n. Received and paid bill from the county for sidewalk repair assessment, $280, Ck. No. 1009 (Miscellaneous Expense).

Required

1. Record the owner’s name in the Capital and Drawing T accounts.

2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts.

3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction.

4. Foot the T accounts and show the balances.

5. Prepare a trial balance as of May 31, 20—.

6. Prepare an income statement for May 31, 20—.

7. Prepare a statement of owner’s equity for May 31, 20—.

8. Prepare a balance sheet as of May 31, 20—.