KG Spring Skating School Inc. had the following account balances as at April 30, 2012: Cash $23,000; Equipment $2,000; Accounts Payable $500; Unearned Revenue (for advance registration fees) $17,500; Common Shares $1,000; and Retained Earnings $6,000. Th e following events and transactions occurred during May:
May 4 Paid for ice time for fi rst two weeks of the May school, $7,200.
9 Paid accounts payable outstanding at April 30.
11 Booked ice with the city for the July session. It will cost $14,400.
11 Received and paid a bill for $500 for advertising of the May skating school.
15 Paid coaches and assistant coaches, $1,000.
18 Paid for ice time for second two weeks of the May school, $7,200.
21 Received a bill for Internet service for $100. Th is invoice is due on June 15.
29 Last day of May session. All of the advance registration fees have now been earned.
29 Paid $200 cash for supplies used immediately.
29 Received advance registrations for the next four-week skating session in July, $2,200.
29 Purchased gift s for volunteers who helped out during May session, $300.
29 Paid coaches and assistant coaches, $1,000.
31 Paid income tax instalment for the month, $1,100.
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.