Question

Wildhorse Inc.’s general ledger at April 30, 2021, included the following: Cash $6,600; Supplies $400; Equipment $21,000; Accounts Payable $2,100; Deferred Revenue (from gift certificates) $1,100; Bank Loan Payable $10,000; Common Shares $5,000; and Retained Earnings $9,800. The following transactions occurred during May:

May	1		Paid rent for the month of May, $1,100.
	4		Paid $1,500 of the account payable outstanding at April 30.
	7		Issued gift certificates for future services for $1,800 cash.
	15		Received $2,900 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 account.
	24		Received a bill for advertising for $500. This bill is due on June 22.
	25		Received and paid a utilities 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.

Accounts Payable May 4 1500 Apr. 30 2100 May 18 600 May 22 700 > May 24 < 500 < Bal. < 700 Deferred Revenue May 17 700 Apr. 30 1100 May 29 600 May 7 1800 Bal. 1600

Please check why my answer for this is not correct?

Answer 1

1. Ledgers -

$ Deferred Revenue May 17$ 700 Apr 30 May 29 $ 600 May 7 Apr 30 May 7 May 15 May 28 $ 1,100 $ 1,800 $ $ $ Cash 6,600 May 1 $ 1,100 1,800 May 4 $ 1,500 2,900 May 15 $ 1,200 2,100 May 18$ 2,100 May 25$ 400 May 30$ 50 May 31 $ 1,200 May 31 $ 150 Cl Bal $ 1,600 $ 2,900 $ 2,900 cl Bal $ 5,700 Bank Loan Payable Apr 30 $ 13,400 $ 13,400 $ 10,000 cl Bal $ 10,000 Apr 30 May 22 $ $ Supplies 400 700 cl Bal $ 1,100 Common Shares Apr 30 $ 5,000 Equipment $ 21,000 Apr 30 cl Bal $ 5,000 Cl Bal $ 21,000 Retained Earnings Apr 30 $ 9,800 Apr 30 $ 9,800 Accounts Payable May 4 $ 1,500 Apr 30$ 2,100 May 18$ 600 May 22 $ 700 May 24 $ 500 Cl Bal $ 1,200 Rent Expense $ 1,100 May 1 $ 3,300 $ 3,300 cl Bal $ 1,100 Utilities Expense $ 400 May 25 Cl Bal $ 400 Service Revenue May 15$ 2,900 May 17 $ 700 May 28 $ 2,100 May 29 $ 600 Interest Expense May 30$ 50 cl Bal $ 6,300 CI Bal $ 50 Income Tax Expense $ 150 Salaries Expense May 15 $ 1,200 May 31 $ 1,200 May 31 cl Bal $ 150 Cl Bal $ 2,400 Advertising Expense May 24 $ 500 cl Bal $ 500

Accounts Payable -

As per your calculation the balance on the accounts payable comes to $700 but as per the calculation the accounts payble balance at the end of May 30 is $1,200.

I have done all the ledgers for your reference.