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 certif 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 certif 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 certif 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 certif 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.
