E connect A201 Online: A201 Summer 2018 ACCOUNTING r 4 Homework Questions 4-5 (o

Question

E connect A201 Online: A201 Summer 2018 ACCOUNTING r 4 Homework Questions 4-5 (of 5) The following information applies to the questions displayed below Rocky owns and operates Balboa's Gym located in Philadelphia The following transactions occur for the month of October October 2 Recelve membership dues for the month of October totaling $9,100 October 5 Issue common stock in exchange for cash, $11,000 October 9 Purchase additional boxing equipment for $8,000, paying one-half of the amount in cash and the other one-half due by the end of the year October 12 Pay $1,100 for advertising regarding a special membership rate available during the month of October October 19 Pay dividends to stockholders, $2,800 October 22 Pay liability insurance to cover accidents to members for the next six months, starting November 1. $7.920 October 25 Recelve cash in advance for November memberships, $6.200 October 30 Receive, but do not pay, utilities bill for the month, $3,600 October 31 Pay employees' salaries for the month, $7,900 value 10.00 points Required: 1. Record each transaction (I no entry is required foc a transaction/event, select "No journal entry required" in the first account fheld) View transaction list

Explanation / Answer

Solution: 1. Date General Journal Debit Credit October 2 Cash 9,100 Service revenue 9,100 October 5 Cash 11,000 Common stock 11,000 October 9 Equipment 8,000 Cash 4,000 Accounts payable 4,000 Note: Half paid in cash 4000, 4000 remain payable October 12 Advertising expense 1,100 Cash 1,100 October 19 Dividends 2,800 Cash 2,800 October 22 Prepaid insurance 7,920 Cash 7,920 Notes: Recording for the expenses of future months , so all prepaid October 25 Cash 6,200 Unearned revenue 6,200 Notes: November revenues recorded as unearned revenue in October October 30 Utilities expense 3,600 Utilities payable 3,600 October 31 Salaries expense 7,900 Cash 7,900 Please feel free to ask if anything about above solution in comment section of the question.

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