On May 5 2013 Gina Ennabeortiz started a carpet cleaning business called Ennabeortiz Family Carpet Cleaning. She completed the following transactions during the month:a.Gina invested $16500 cash and a small truck with a value of $8000 to start her business.b.Prepaid $3500 cash for 12 months rent on a small office.c.Purchased office supplies for cash $575.d.Purchased equipment on account $4000.e.Received cash for services performed $3350.f.Performed services on credit $2350.g.Purchased truck supplies on account $125.h.Received $15350 cash in advance of providing cleaning services to a customer.i.Paid $2500 cash for the premium on a 6-month insurance policy.j.Paid salary of employee $1550.k.Purchased $2500 of additional equipment by paying $400 cash and signing a long-term note payable for $2100.l.Paid for repairs to truck $225.m.Received $1350 for the services performed in transaction f.n.Paid utilities $315.o.Completed cleaning services and immediately collected $10500.p.Paid creditor $675 on the purchase in transaction g.q.Provided $2000 of cleaning services from transaction h.r.Gina withdrew cash for personal use $2775.s.Paid $5000 cash for advertisements on the local television station during May.Required:1. Prepare general journal entries to record these transactions (use the account titles listed in part 2).2. Open a set of T accounts with the following titles: Cash (101) Accounts Receivable (106); Office Supplies (124); Truck Supplies(128); Equipment (131); Prepaid Rent (140); Prepaid Insurance (150); Truck (163); Accounts Payable (201); Notes Payable (202); Unearned Cleaning Revenue (203); Gina Ennabeortiz Capital (301); Gina Ennabeortiz Drawing (302); Cleaning Revenue (403); Salaries Expense (620); Truck Expense (630); Utilities Expense (640) and Advertising Expense (650). Post journal entries from Part 1 to the T accounts and calculate the account balance for each account.3. Prepare a trial balance as of the end of this month s operations.4. Using the trial balance created above prepare an income statement statement of owner s equity and a balance sheet for the month ended May 31st.
