KG Spring Skating School Inc. had the following account balances as at April 30, 2012: Cash $23,000;

Question:

KG Spring Skating School Inc. had the following account balances as at April 30, 2012: Cash $23,000; Equipment $2,000; Accounts Payable $500; Advance Registration Fees (similar to Unearned Revenue) $17,500; Common Shares $1,000; and Retained Earnings $6,000. The following events and transactions occurred during May:

May 4 Additional registrations for the May four-week skating session were received, $5,500 cash.

4 Paid for ice time for first 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, $600.

18 Paid for ice time for second two weeks of the May school, $7,200.

21 Received a bill for Internet service for $100. This 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 gifts for volunteers who helped out during May session, $300.

29 Paid coaches and assistant coaches, $600.

Instructions

(a) Using T accounts, enter the beginning balances in the general ledger as at April 30.

(b) Journalize the May transactions.

(d) Prepare a trial balance as at May 31.

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...