Reference no: EM132421287
Problem: Pamper Me Salon Inc. s general ledger at April 30, 2017, showed
Cash $5,000
Supplies $500
Equipment $24,000
Accounts Payable $2,100
Unearned revenue (from gift certificates) $1,000
Bank Loan Payable $10,000
Common Shares $5,000
Retained Earnings $11,400.
The following transactions occurred during May:
MAY 1 Paid rent for the month of May, $1,000.
MAY 4 Paid $1,100 of the accounts payable outstanding at April 30.
MAY 7 Issued gift certificates for future services for $1,500 cash.
MAY 15 Received $2,000 from customers for services performed to date.
MAY 15 Paid $1,200 in salaries to employees.
MAY 17 Customers receiving services worth $700 used gift certificates in payment.
MAY 18 Paid the remaining accounts payable from April 30.
MAY 22 Purchased supplies of $700 on account.
MAY 24 Received a bill for advertising for $500. This bill is due on June 22.
MAY 25 Received and paid a utilities bill for $400.
MAU 28 Received $2,100 from custorners for services performed.
MAY 29 Customers receiving services worth $600 used gift certificates in payment.
MAY 30 Interest of $50 was paid on the bank loan.
MAY 31 Paid $1,200 in salaries to employees.
MAY 31 Paid Income Tax instalment for the month, $150.
Instructions
a) Jourmalize the May transactions
b) Set up the T accounts, enter the beginning balances in the general ledger at April 30, and post the May journal entries to the general ledger.
c) Prep a trial balance at May 31.
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