January, 20XX Transactions: Jan. 1 The following assets were received from Oneid

Question

January, 20XX Transactions: Jan. 1 The following assets were received from Oneida Reza: Cash $65,000; Accounts Receivables 1 2 4 14,700; Equipment, $24,000; Supplies $5,000. There were no liabilities. Paid three months' rent on a lease rental contract, $9,000. Paid 12-month premiums on property and casualty insurance policies, $12,000 Received cash from a corporate client as an advance payment (unearned revenue) for fitness design, $9,400 5 Purchased fitness equipment on account from Doubletree Fitness Equipment, $8,000. 6 Received check from design clients on account, $11,700. 10 Paid cash for a newspaper advertisement, $350. 11 Paid Doubletree Fitness Equipment for part of the debt incurred on Jan. 5, $6,400. 12 Recorded design services provided on account for the period Jan. 1-12, $21,900 14 Paid fitness assistants for two weeks' salary, $1,650. Record the following transactions on Page 2 of the journal. 17 Recorded cash from membership fees earned during the period Jan. 1-16, $7,600. 18 Paid cash for supplies, $825 20 Recorded services design services provided on account for the period Jan. 13-20, $16,800 24 Recorded cash from membership fees earned for the period Jan. 17-24, $4,450 26 Received cash from design clients on account, $26,500. 27 Paid fitness assistants for two weeks' salary, $1,650. 29 Paid telephone bill for January, $540. 30 Paid electricity bill for January, $760. 30 Recorded cash from membership fees earned for the period Jan. 25-30, $5,160. 30 Recorded design services provided on account for the remainder of January, $2,590. 30 Oneida withdrew $20,000 for personal use. At the end of January, the following adjustment data is prepared. Analyze and use the data to requirements 3 and 4. a. One month's insurance expired during January (calculation required. b. Supplies on hand on January 31 are $1225. c. Depreciation of Furniture & Equipment is for one month. Equipment of $24,000 was new with no previous depreciation. Estimated life of equipment is 2.5 years d. Accrued fitness assistants salary on January 31 is $275. e. One month of rent expired during January f. Unearned fees on January 31 are $2,350

Explanation / Answer

Cash Accounts No.110 Accounts Receivable Accounts No.111 Balance Balance Date Item Post Ref Debit Credit Debit Credit Date Item Post Ref Debit Credit Debit Credit Jan.1 65000 65000 Jan.1 14700 14700 Jan.1 9000 56000 Jan.6 11700 3000 Jan.2 12000 44000 Jan.12 21900 24900 Jan.4 9400 53400 Jan.20 16800 41700 Jan.6 11700 65100 Jan.26 26500 15200 Jan.10 350 64750 Jan.30 2590 17790 Jan.11 6400 58350 17790 Jan.14 1650 56700 17790 Jan.17 17600 74300 17790 Jan.18 825 73475 Jan.24 4450 77925 Supplies Accounts No.116 Jan.26 26500 104425 Balance Jan.27 1650 102775 Date Item Post Ref Debit Credit Debit Credit Jan.29 540 102235 Jan.1 5000 5000 Jan.30 760 101475 Jan.18 825 5825 Jan.30 5160 106635 b 4600 1225 Jan.30 20000 86635 86635 Prepaid Insurance Accounts No.120 Prepaid Rent Accounts No.118 Balance Balance Date Item Post Ref Debit Credit Debit Credit Date Item Post Ref Debit Credit Debit Credit Jan.12 12000 12000 Jan.1 9000 9000 a 1000 11000 e 3000 6000 6000 Furniture & Equipment Accounts No.140 Acumulated Depr. - Furn & fixt. Accounts No.141 Balance Balance Date Item Post Ref Debit Credit Debit Credit Date Item Post Ref Debit Credit Debit Credit Jan.1 24000 24000 c 1067 1067 Jan.5 8000 32000 1067 32000 1067 Unearned Fee Accounts No.210 Wages & Salaries Payable Accounts No.205 Balance Balance Date Item Post Ref Debit Credit Debit Credit Date Item Post Ref Debit Credit Debit Credit Jan.4 9400 9400 d 275 275 f 7050 2350 275 2350 275 Oneida Reza, Capital Accounts No.301 Accounts Payable Accounts No.201 Balance Balance Date Item Post Ref Debit Credit Debit Credit Date Item Post Ref Debit Credit Debit Credit Jan.1 108700 108700 Jan.5 8000 8000 108700 Jan.11 6400 1600 108700 1600 1600 Oneida Reza, Drawing Accounts No.302 Balance Membership Fee Accounts No.401 Date Item Post Ref Debit Credit Debit Credit Balance Jan.30 20000 20000 Date Item Post Ref Debit Credit Debit Credit 20000 Jan.17 17600 17600 Jan.24 4450 22050 Jan.30 5160 27210 Salary Expense Accounts No.501 27210 Balance 27210 Date Item Post Ref Debit Credit Debit Credit 27210 Jan.14 1650 1650 Jan.21 1650 3300 d 275 3575 Designer Service Fee Accounts No.409 Balance RentExpense Accounts No.530 Date Item Post Ref Debit Credit Debit Credit Balance Jan.12 21900 21900 Date Item Post Ref Debit Credit Debit Credit Jan.20 16800 38700 e 3000 3000 Jan.30 2590 41290 3000 f 7050 48340 Depreciation Expense Accounts No.540 Balance Supplies Expense Accounts No.520 Date Item Post Ref Debit Credit Debit Credit Balance c 1067 1067 Date Item Post Ref Debit Credit Debit Credit 1067 b 4600 4600 1067 4600 Insurance Expense Accounts No.550 Balance Misc.Expense Accounts No.590 Date Item Post Ref Debit Credit Debit Credit Balance a 1000 1000 Date Item Post Ref Debit Credit Debit Credit 1000 Jan.10 350 350 Jan.29 540 890 Jan.30 760 1650

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