Question
P3-10A Pamper Me Salon Inc.s general ledger at April 30, 2017, included the following: Cash $5,000, Supplies $500, Equipment $24,000, Accounts Payable $2,100, Notes Payable
P3-10A Pamper Me Salon Inc.s general ledger at April 30, 2017, included the following: Cash $5,000, Supplies $500, Equipment $24,000, Accounts Payable $2,100, Notes Payable $10,000, Unearned Service Revenue (from gift certifi cates) $1,000, Common Stock $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 certifi cates for future services for $1,500 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 certifi cates in payment. 21 Paid the remaining accounts payable 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 $1,700 in cash from customers for services performed. 29 Customers receiving services worth $600 used gift certifi cates in payment. 31 Interest of $50 was paid on the note payable. 31 Paid $1,200 in salaries to employees. 31 Paid income tax payment for the month $150. Instructions (a) Using T-accounts, enter the beginning balances in the general ledger as of April 30, 2017. (b) Journalize the May transactions. (c) Post the May journal entries to the general ledger. (d) Prepare a trial balance on May 31, 2017.
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