Gushoe Ltd. had the following selected opening account balances at the end of April 30: Cash $1,500; Accounts Receivable $1,800; and Accounts Payable $900. Transactions during the month of May are presented in journal entry form below.

(a) Provide an explanation for each of the journal entries listed above.
(b) Set up T accounts, enter the balances at April 30, post the May journal entries to the general ledger, and determine the ending balances.

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GENERAL JOURNAL Date Account Titles Debit Credit May 4 Accounts Receivable 3,200 Service Revenue 3,200 7 Dividends Declared50o Cash 500 11 Cash 1,900 Accounts Receivable 21 Cash 1,900 2,000 Service Revenue 2,000 25 Salaries Expense 2,500 Cash 2,500 28 Accounts Payable 200 Cash 200 30 Income Tax Expese 750 Cash 750