Question

Ivanhoe Inc.’s general ledger at April 30, 2021, included the following: Cash $5,000; Supplies $300; Equipment $20,000; Accounts Payable $2,100; Deferred Revenue (from gift certificates) $1,200; Bank Loan Payable $10,000; Common Shares $5,000; and Retained Earnings $7,000. The following transactions occurred during May: May 1 Paid rent for the month of May, $1,200. 4 Paid $1,200 of the account payable outstanding at April 30. 7 Issued gift certificates for future services for $1,500 cash. 15 Received $2,100 from customers for services performed to date. 15 Paid $1,200 in salaries to employees. 17 Customers receiving services worth $700 used gift certificates in payment. 18 Paid the remaining accounts payable from April 30. 22 Purchased supplies of $700 on the account. 24 Received a bill for advertising for $500. This bill is due on June 22. 25 Received and paid a utility bill for $400. 28 Received $2,100 from customers for services performed. 29 Customers receiving services worth $600 used gift certificates in payment. 30 Interest of $50 was paid on the bank loan. 31 Paid $1,200 in salaries to employees. 31 Paid income tax instalment for the month, $150. Provide the journal entries.

Answer 1

Credit $1,200 $1,200 $1,500 $2,100 $1,200 $ 700 Date Account Title Debit May-01 Rent Expenses $1,200 Cash May-04 Accounts Payable $1,200 Cash May-07 Cash $1,500 Deffered Revenue May-15 Cash $2,100 Service Revenue May-15 Salaries Expenses $1,200 Cash May-17 Deffered Revenue $ 700 Service Revenue May-18 Accounts Payable $ 900 Cash May-22 Supplies $ 700 Accounts Payable May-25 Utility Expenses $ 400 Cash May-28 Cash $2,100 Service Revenue May-29 Deffered Revenue $ 600 Service Revenue May-30 Interest expenses $ 50 Cash May-31 Salaries Expenses $1,200 Cash May-31 Income tax expenses $ 150 Cash $ 900 $ 700 $ 400 $2,100 $ 600 $ 50 $1,200 $ 150