Transactions

May 1          Terry purchased computer equipment for $8,400, paying $1,000 now, and issuing a promissory note for the balance; the note is due in monthly installments of $500 plus interest at 10% on the unpaid balance.

8           Terry records service revenue earned: $3,200 from cash customers; $12,000 for customers billed for completed services.

22           Common stock is issued for land with a fair value of $35,000.

31           An invoice for $1,200 is received from the company’s advertising agency for ads which were run on radio and TV during May; the invoice is due in 30 days.

Refer to the transactions for Terry Company.

Use the transactions incurred by the Terry Corporation to set up T accounts and post each transaction to the T accounts.