Pamper Me Salon Inc.’s general ledger at April 30, 2012, included the following: Cash $7,000; Supplies $500; Equipment $24,000; $2,100; Bank Loan Payable $10,000; Gift Certificates Outstanding $3,000 (this is similar to Unearned Revenue); Common Shares $5,000; and Retained Earnings $11,400. The following events and transactions occurred during May:
May 1 Paid rent for the month of May, $1,000.
4 Paid $1,100 of the account payable at April 30.
7 Issued gift certificates for $2,500 cash.
8 Received $1,200 cash from customers for services performed.
14 Paid $1,200 in salaries to employees.
15 Received $800 in cash from customers for services performed.
15 Customers receiving services worth $700 used gift certificates in payment.
21 Paid the remaining from April 30.
22 Received $1,000 in cash from customers for services performed.
22 Purchased supplies of $700 on account. All of these were used during the month.
25 Received a bill for advertising for $500. This bill is due on June 13.
25 Received and paid a utilities bill for $400.
29 Received $700 in cash from customers for services performed.
29 Customers receiving services worth $600 used gift certificates in payment.
31 Interest of $50 was paid on the bank loan.
31 Paid $1,200 in salaries to employees.
Instructions
(a) Using T accounts, enter the beginning balances in the general ledger as at April 30.
(b) Journalize the May transactions.
(c) Post the May journal entries to the general ledger.
(d) Prepare a trial balance as at May 31.
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