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P2.3 (LO 1, 2, 3, 4) Kochi Services was formed on May 1, 2020. The...

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Accounting

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P2.3 (LO 1, 2, 3, 4) 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 340,000 cash in the company in exchange for ordinary shares. 2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month. 3. Signed a 2-year rental agreement on a warehouse; paid 324,000 cash in advance for the first year. 4. Purchased furniture and equipment costing 530,000. A cash payment of 10,000 was made imme- diately, the remainder will be paid in 6 months. 5. Paid 31,800 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 420 cash. 7. Purchased more office supplies for 1,500 on account. 8. Total revenues earned were 320,00038,000 cash and 12,000 on account. 9. Paid 400 to suppliers for accounts payable due. 10. Received 33,000 from customers in payment of accounts receivable. 11. Received utility bills in the amount of 380, to be paid next month. 12. Paid the monthly salaries of the two employees, totaling 6,100. Required: 1. Do five-step analysis for all transactions 2. Prepare Trial Balance

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