Chamberlain Services was formed on May 1, 2014. The following transactions took place during the fi rst month. Transactions on May 1: 1. Shareholders invested 50,000 cash in exchange for ordinary shares. 2. Hired two employees to work in the warehouse. They will each be paid a salary of 2,800 per month. 3 . Signed a 2-year rental agreement on a warehouse; paid 24,000 cash in advance for the fi rst year. 4. Purchased furniture and equipment costing 30,000. A cash payment of 8,000 was made immediately; the remainder will be paid in 6 months. 5 . Paid 1,800 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 750 cash. 7. Purchased more office supplies for 1,300 on account. 8 . Total revenues earned were 20,000 - 8,000 cash and 12,000 on account. 9. Paid 400 to suppliers for accounts payable due. 10. Received 3,000 from customers in payment of accounts receivable. 11 . Received utility bills in the amount of 260, to be paid next month. 12. Paid the monthly salaries of the two employees, totaling 5,600. Required: a) Prepare journal entries using( 7 points) b) Prepare Income statement from the results of transactions ( 5 points) c) Prepare Balance sheet ( 5 points) d) Which operations should you add to investing activity in case of preparation of Cash flow statement and why? (2 points)