This problem continues the accounting process for Fitness Equipment Doctor, Inc., from the Continuing Problem in Chapter 2. The trial balance for Fitness Equipment Doctor, Inc., at April 30, 2018, should look like this:

The following transactions occurred during May:

May 1 Paid four months? rent, $6,400.4 Performed service for a customer and received cash, $2,500.9 Received $3,600 from customers for services to be performed later.12 Purchased $650 of supplies on account.15 Billed customers for services performed, $3,400.16 Paid receptionist?s salary, $675.22 Received $3,800 on account.25 Paid $2,500 on account.28 Received $1,600 cash for services performed.30 Paid $2,000 of dividends.

Requirements

1. Journalize the transactions that occurred in May. No explanations are necessary.

2. Using the four-column accounts from the continuing problem in Chapter 2, post the transactions to the ledger, creating new ledger accounts as necessary. Omit posting references. Calculate the new account balances at May 31.

3. Prepare the unadjusted trial balance for Fitness Equipment Doctor, Inc., at May 31.

4. Journalize and post the adjusting entries for May based on the following adjustment information.

a. Record the expired rent.

b. Supplies on hand, $450.

c. Depreciation: equipment, $450; furniture, $115; vehicles, $1,200.

d. Services performed but unbilled, $2,800.

e. Accrued salaries, $675.

f. Unearned service revenue earned as of May 31, $700.

5. Prepare an adjusted trial balance for Fitness Equipment Doctor, Inc., at the end of May.

6. Prepare the income statement and statement of retained earnings for the threemonth period March 1 through May 31, 2018. Also prepare a balance sheet at May 31, 2018.

7. Prepare and post closing entries.

8. Prepare a post-closing trial balance at May 31, 2018.

Transcribed Image Text:

Fitness Equipment Doctor, Inc. Trial Balance April 30, 2018 ACCOUNT DEBIT CREDIT Cash $23,485 5,600 Accounts Receivable Supplies 1,350 Land 16,000 2,100 3,600 Furniture Equipment Vehicles 35,800 $ 2,850 Accounts Payable Notes Payable 35,800 Common Stock 45,000 Dividends 3,800 Service Revenue 13,300 Salaries Expense Rent Expense Advertising Expense Utilities Expense Miscellaneous Expense 2,645 1,500 500 495 75 $96,950 $96,950 Total