Schrand Aerobics, Inc., rents studio space $($including a sound system$)$ and specializes in offering aerobics classes. On January $1,$ its beginning account balances are as follows: Cash, $$5,000$; Accounts Receivable, $$5,200$; Equipment, $$0$; Notes Payable, $$2,500$; Accounts Payable, $$1,000$; Common Stock, $$5,500$; Retained Earnings, $$1,200$; Services Revenue, $$0$; Rent Expense, $$0$; Advertising Expense, $$0$; Wages Expense, $$0$; Utilities Expense, $$0$; Interest Expense, $$0.$

The following transactions occurred during January.

  Required:
a. Prepare journal entries for each of the transactions 1 through 10.
b. Set up accounts, including beginning balances, for cash of the accounts used in part a. Post the journal entries to those T-accounts.  

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Balance Sheet Contributed Earned Income Statement Transaction Cash Asset + Noncash Assets = Liabilities + Capital + Capital Revenue Expenses = Net Income Beg. Balance + $ 0+ $ 0+ $ 0 $ 0 - $ 0 = $ 0 (1) Paid $900 cash toward accounts payable 0+ 0 0+ 0+ 0 0 = (2) Paid rent in cash: $5,400 0 + 0 = 0 + 0 + 0 0 - 0 = 0 (3) Billed clients $17,250 0 + 0 = 0 + 0 + 0 - 0 = 0 (4) $750 invoice received for advertising 0 + 0 = 0+ 0 + 0 0 0 = 0 (5) Cash collected on account: $15,000 0+ 0 = 0 + 0 + 0 0 = (6) Paid wages expense in cash: $3,600 0 + 0 = 0 + 0 + 0 0 - 0 = 0 (7) Invoiced for utility expense:$1,020 0 + 0 = 0 + 0 + 0 - 0 = 0 (8) Paid $30 cash for interest on note 0 + 0 = 0 + 0 + 0 0 0 = 0 (9) Paid $1,350 cash dividend 0+ 0 = 0 + 0 + 0 0 = (10) Paid $6,000 cash for sound equipment 0 + 0 = 0 + 0 + 0 0 - 0 = 0 TOTALS 0 + 0 0+ 0 + 0 0 = 0 Balance Sheet Contributed Earned Income Statement Transaction Cash Asset + Noncash Assets = Liabilities + Capital + Capital Revenue Expenses = Net Income Beg. Balance + $ 0+ $ 0+ $ 0 $ 0 - $ 0 = $ 0 (1) Paid $900 cash toward accounts payable 0+ 0 0+ 0+ 0 0 = (2) Paid rent in cash: $5,400 0 + 0 = 0 + 0 + 0 0 - 0 = 0 (3) Billed clients $17,250 0 + 0 = 0 + 0 + 0 - 0 = 0 (4) $750 invoice received for advertising 0 + 0 = 0+ 0 + 0 0 0 = 0 (5) Cash collected on account: $15,000 0+ 0 = 0 + 0 + 0 0 = (6) Paid wages expense in cash: $3,600 0 + 0 = 0 + 0 + 0 0 - 0 = 0 (7) Invoiced for utility expense:$1,020 0 + 0 = 0 + 0 + 0 - 0 = 0 (8) Paid $30 cash for interest on note 0 + 0 = 0 + 0 + 0 0 0 = 0 (9) Paid $1,350 cash dividend 0+ 0 = 0 + 0 + 0 0 = (10) Paid $6,000 cash for sound equipment 0 + 0 = 0 + 0 + 0 0 - 0 = 0 TOTALS 0 + 0 0+ 0 + 0 0 = 0

Answer rating: 100% (QA)

a Here are the journal entries for transactions 1 through 10 1 Issued common stock for cash Cash 550... View the full answer