KG Skating School Inc.'s general ledger at March 31, 2018, showed Cash $23,000; Equipment $2,000; Accounts Payable

Question:

KG Skating School Inc.'s general ledger at March 31, 2018, showed 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. The following transactions occurred during April:

Apr. 2Paid for ice time for first two weeks of April, $5,000. (Hint: Use the account Rent Expense to record ice rentals.)

4 Booked ice with the city for the April session. It will cost $10,000.

6 Received and paid a bill for $500 for advertising of the April skating school.

9 Paid $300 of accounts payable outstanding at March 31.

13 Paid coaches and assistant coaches, $1,000.

16 Paid for ice time for remainder of April, $5,000.

18 Received a bill for Internet service for $100. This invoice is due on May 15.

19 Paid $200 cash for supplies used immediately.

24 Received advance registrations for the next four-week skating session in May, $2,200.

25 Paid income tax instalment for the month, $880.

27 Purchased gifts for volunteers who helped out during April session, $300. (Hint: Use the account Advertising Expense to record gifts.)

30 Paid coaches and assistant coaches, $1,000.

30 Last day of April session. All of the advance registration fees have now been earned.

Instructions

(a) Journalize the April transactions.

(b) Set up T accounts, enter the beginning balances in the general ledger at March 31, and post the April journal entries to the general ledger.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...