Kochi Services was formed on May 1, 2020. The following transactions took place during the first month (amounts in thousands). Transactions on May 1: 1. Rahul Shah invested INR40,000 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 INR3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid INR24,000 cash in advance for the first year. 4. Purchased furniture and equipment costing INR30,000. A cash payment of INR10,000 was made immediately; the remainder will be paid in 6 months. 5. Paid INR1,800 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 INR420 cash. 7. Purchased more office supplies for INR1,500 on account. 8. Total revenues earned were INR20,000—INR8,000 cash and INR12,000 on account. 9. Paid INR400 to suppliers for accounts payable due. 10. Received INR3,000 from customers in payment of accounts receivable. 11. Received utility bills in the amount of INR380, to be paid next month. 12. Paid the monthly salaries of the two employees, totaling INR6,100. Instructions a. Prepare journal entries to record each of the events listed. (Omit explanations.) b. Post the journal entries to T-accounts. c. Prepare a trial balance as of May 31, 2020

To meet the requirements, the following accounting records are prepared for Kochi Services for the month of May, 2020:

a. Journal Entries:

May 1: Debit Cash INR40,000

Credit Equity INR40,000

May 3. Debit Prepaid Rent INR24,000

Credit Cash INR24,000

May 4. Debit Furniture and Equipment INR30,000

Credit Cash INR10,000

Credit Accounts Payable INR20,000

May 5. Debit Prepaid Insurance INR1,800

Credit Cash INR1,800

May 6. Debit Office Supplies INR420

Credit Cash INR420

May 7. Debit Office Supplies INR1,500

Credit Accounts Payable INR1,500

May 8. Debit Cash INR8,000

Debit Accounts Receivable INR12,000

Credit  Service Revenue INR20,000

May 9. Debit Accounts Payable INR400

Credit Cash INR400

May 10. Debit Cash INR3,000

Credit Accounts Receivable INR3,000

May 11. Debit Utilities Expense INR380

Credit Accounts Payable INR380

May 12. Debit Salaries Expense INR6,100

Credit Cash INR6,100

b. T-accounts:

Cash

Date      Account Titles                 Debit       Credit

May 1: Equity                            INR40,000

May 3. Prepaid Rent                                   INR24,000

May 4. Furniture and Equipment               INR10,000

May 5. Prepaid Insurance                             INR1,800

May 6. Office Supplies                                   INR420

May 8. Service Revenue          INR8,000

May 9. Accounts Payable                               INR400

May 10. Accounts Receivable INR3,000

May 12. Salaries Expense                            INR6,100

May 31. Balance                                          INR8,280

Totals                                     INR51,000  INR51,000

Accounts Receivable

Date      Account Titles                 Debit       Credit

May 8. Service Revenue         INR12,000

May 10. Cash                                             INR3,000

May 31. Balance                                        INR9,000

Totals                                     INR12,000 INR12,000

Prepaid Rent

Date      Account Titles                 Debit       Credit

May 3.   Cash                         INR24,000

Prepaid Insurance

Date      Account Titles                 Debit       Credit

May 5.   Cash                              INR1,800

Office Supplies

Date      Account Titles                 Debit       Credit

May 6.   Cash                                 INR420

May 7.   Cash                              INR1,500

May 31. Balance                                            INR1,920

Totals                                        INR1,920     INR1,920

Furniture and Equipment

Date      Account Titles                 Debit       Credit

May 4.   Cash                           INR10,000

May 4.   Accounts Payable     INR20,000

May 31. Balance                                        INR30,000

Totals                                     INR30,000 INR30,000

Accounts Payable

Date      Account Titles                 Debit       Credit

May 4. Furniture and Equipment           INR20,000

May 6. Office Supplies                              INR1,500

May 11  Utilities Expense                             INR380

May 9. Cash                               INR400

May 31. Balance                     INR21,480

Totals                                     INR21,880 INR21,880

Equity

Date      Account Titles                 Debit       Credit

May 1.   Cash                                            INR40,000

Service Revenue

Date      Account Titles                 Debit       Credit

May 8. Cash                                                  INR8,000

May 8  Accounts Receivable                      INR12,000

May 31. Balance                   INR20,000

Totals                                    INR20,000   INR20,000

Utilities Expense

Date      Account Titles                 Debit       Credit

May 11. Accounts Payable           INR380

Salaries Expense

Date      Account Titles                 Debit       Credit

May 12.  Cash                           INR6,100

c. KOCHI SERVICES

Trial Balance as of May 31, 2020:

Date      Account Titles          Debit       Credit

Cash                                 INR8,280

Accounts Receivable            9,000

Prepaid Rent                       24,000

Prepaid Insurance                 1,800

Office Supplies                     1,920

Furniture and Equipment 30,000

Accounts Payable                                INR21,480

Equity                                                        40,000

Service Revenue                                      20,000

Utilities Expense                      380

Salaries Expense                   6,100

Totals                            INR81,480   INR81,480

Data Analysis:

May 1: Cash INR40,000 Equity INR40,000

May 3. Prepaid Rent INR24,000 Cash INR24,000

May 4. Furniture and Equipment INR30,000 Cash INR10,000 Accounts Payable INR20,000

May 5. Prepaid Insurance INR1,800 Cash INR1,800

May 6. Office Supplies INR420 Cash INR420

May 7. Office Supplies INR1,500 Accounts Payable INR1,500

May 8. Cash INR8,000 Accounts Receivable INR12,000 Service Revenue INR20,000

May 9. Accounts Payable INR400 Cash INR400

May 10. Cash INR3,000 Accounts Receivable INR3,000

May 11. Utilities Expense INR380 Accounts Payable INR380

May 12. Salaries Expense INR6,100 Cash INR6,100

Learn more about preparing the trial balance at link

answer; vertical marketing system;

a.