Bob Reeves won a concession to rent bicycles in the local park during the summer. In the month of LO 1 Transaction Analysis, LO 4 T Accounts, LO 5 General Journal, LO 7 and Trial Balance May, Reeves completed the following transactions for his bicycle rental business:

May 3 Began business by placing 14,400 in a bank account in the name of the corporation in exchange for 14,400 shares at a nominal value of 1 each.

6 Purchased supplies on account for 300 May 7 Purchased ten bicycles for a total of 5,000, paying 2,400 down and agreeing to pay the rest in thirty days.
8 Received 940 in cash for rentals during the first week of operation.
9 Hired a part-time assistant to help out on weekends at 8 per hour.
10 Purchased a small shed to hold the bicycles and to use for other operations for 5,800 in cash.
11 Paid 800 in cash for shipping and installation costs (considered an addition to the cost of the shed) to place the shed at the park entrance.
14 Received 1,000 in cash for rentals during the second week of operation.
15 Paid a maintenance person 150 to clean the grounds.
16 Paid the assistant 160 for a weekend's work.
19 Paid 300 for the supplies purchased on May 6.
20 Paid 110 on a previously unrecorded repair bill on bicycles.
21 Received 1,100 in cash for rentals during the third week of operation.
23 Paid the assistant 160 for a weekend's work.
24 Billed a company 220 for bicycle rentals for an employees' outing.
26 Paid the 200 fee for May to the Park District for the right to the bicycle concession.
28 Received 820 in cash for rentals during the week.
30 Paid the assistant 160 for a weekend's work.
31 Declared and paid a dividend of 1,000 .
REQUIRED 1. Record these transactions in the general journal. Use the accounts listed below.
2. Set up the following T accounts and post all the journal entries: Cash; Accounts Receivable; Supplies; Shed; Bicycles; Accounts Payable; Share Capital; Dividends; Rental Revenue; Wages Expense; Maintenance Expense; Repair Expense; and Concession Fee Expense.
3. Prepare a trial balance for Reeves Rentals as of May 31, 20xx.
4. Discuss how recognition applies to the transactions of May 24 and 28 and how classification applies to the transactions of May 11 and 15.