AP 1–1

a.

Collected $5,000 cash for tool rental during the month

b.

Paid $500 rent expense

c.

Paid $1,500 cash to satisfy an account payable

d.

Paid $600 for a one-year insurance policy effective May 1 (record the asset as prepaid expense)

e.

Purchased used truck for $5,000 on credit

f.

Paid the following expenses: advertizing, $300; salaries, $2,500; telephone, $150; truck operating, $550

g.

Transferred the amount of May’s insurance ($50) to insurance expense

h.

Estimated $200 of supplies to have been used during May

i.

Issued additional share capital and received $1,000 cash

j.

Paid $300 dividend in cash.