a. Enter the journal entries required (if any) from the transactions or source documents dated April 1 through April 15.

-Record the purchase of inventory on account only, and any other transactions with credits to Accounts Payable, in the Purchases Journal

-Record sales of inventory on account only in the sales journal, using the invoice number as the reference. (Note this journal is called the Revenue Journal in some texts)

-Record ALL cash payments, for whatever reason, in the Cash Payments Journal, using the check number as the reference

-Record ALL cash receipts, including cash sales, in the Cash Receipts Journal

-Record adjustments and any other transactions that do not fit the above criteria in the General Journal.

VW Gornal - COSTayutis Jaya .casniccy's Fit & Fashionable 800 Coco Drive, Coconut Grove, FL 33133 DESCRIPTION OF THE COMPANY Fit & Fashionable is mainly a wholesaler of fitness equipment and apparel, strategically located in Coconut Grove, FL. The clientele of Fit & Fashionable consists primarily of local gyms, wellness centers, retail outlets of sports equipment and apparel, and the general public, Fit & Fashionable is owned and operated by Marty Chavez. You are employed to maintain the accounts and prepare financial statements for Fit & Fashionable. This practice set includes the transactions completed during April, which are intended to illustrate general principles of accounting rather than the techniques of the accounting system of a particular business. You are to analyze, record, and post these transactions for April. You will then journalize entries for accounts requiring adjustment, prepare month-end financial reports, and complete the closing process. The information below contains a description of the contents of the practice set and instructions for completing the project manually. The practice set can also be completed utilizing the Cengage Learning General Ledger (CLGL) software, which is available online at CengageBrain.com. Instructions for using this general ledger software are provided on pages 3-5. BOOKS OF ACCOUNT Journals Ledgers The following journals are included in this The following ledgers are included in Booklet 2: booklet: 1. General Ledger 1. General Journal 2. Accounts Receivable Ledger 2. Revenue Joumal (also called a Sales 3. Accounts Payable Ledger Journal) 3. Purchases Journal 4. Cash Receipts Journal 5. Cash Payments Journal A complete chart of accounts and a complete list of all customers and creditors are provided on the inside front cover of Booklet 2. In the general ledger, all accounts have been opened and the account balances as of April 1, the beginning of a new fiscal period, have been entered. In the accounts receivable ledger and the accounts payable ledger, all accounts have been opened and all amounts due or owed are shown. MANUAL INSTRUCTIONS This practice set is designed to be used with the business forms and/or with the Narrative of Transactions, both of which may be found in Booklet 3. etor. Marty sing the trial balapith the works Journalizing Transactions The business forms are the source of information regarding the transactions and are the basis for the journal entries. Opeo Booklet 3 and follow the instructions contained in it. Using the business forns and/or the narrative, begin journalizing the transactions. (Note: Post daily to the subsidiary ledgers.) Posting to the General Ledger 1. Total each column of the various special journals. Ensure that total debits equal total credits in each journal 2. Post all items that need to be posted individually to the general ledger. The general ledger account balances do not need to be determined until the posting is completed. Use the printed page numbers in your posting references. 3. Post the appropriate totals in the special journals to their respective accounts in the general ledger. Determine the balance of each account. The cash balance on April 30 should be $146,131.01. Month-End Processing Since the proprietor, Marty Chavez, considers each month to be a separate fiscal period, you must now complete month-end processing. Ruled forms are provided for the trial balance, schedules, and financial statements. A work sheet is provided, and its use is optional. The heading, with the exception of the date line, is printed on each form. Also, all general ledger account titles are printed on the work sheet. 1. Prepare schedules of accounts receivable and accounts payable, and compare the totals with the balances of the controlling accounts in the general ledger. 2. Prepare a trial balance at April 30. (Completing the work sheet is optional) 3. Make necessary adjustments. Record adjusting entries on page 6 of the general journal. Adjustment data are as follows: a) Inventory per physical count, April 30....................... $208,554.75 b) Office supplies on hand at April 30...... ...... .......... 1,600.00 c) Store supplies on hand at April 30. . 3,005.00 d) Prepaid Insurance: Transfer 1/12 of the premium paid on April 2 to expense. Depreciation for the month: e) Equipment......... 1,250.00 f) Building ........ 2,475.00 g) Interest earned on note receivable. 30.00 h) Accrued salaries at April 30: Sales salaries....... 1,200.00 Office salaries ..... ..... 500.00 Record the estimate of customer returns of this month's sales Sales 4470 i) Customer refunds.. 4,470.00 Curt lof Payable W70 (debit Sales, credit Customer Refunds Payable) 3,190.00 1196 (debit Estimated Returns Inventory, credit Cost of Goods Sold) Returns inventory.................... Estretes laver 3/4 cogs mind olidarnotot nuhlicly accessible website, in whole or in part. etor. Marty sing the trial balapith the works Journalizing Transactions The business forms are the source of information regarding the transactions and are the basis for the journal entries. Opeo Booklet 3 and follow the instructions contained in it. Using the business forns and/or the narrative, begin journalizing the transactions. (Note: Post daily to the subsidiary ledgers.) Posting to the General Ledger 1. Total each column of the various special journals. Ensure that total debits equal total credits in each journal 2. Post all items that need to be posted individually to the general ledger. The general ledger account balances do not need to be determined until the posting is completed. Use the printed page numbers in your posting references. 3. Post the appropriate totals in the special journals to their respective accounts in the general ledger. Determine the balance of each account. The cash balance on April 30 should be $146,131.01. Month-End Processing Since the proprietor, Marty Chavez, considers each month to be a separate fiscal period, you must now complete month-end processing. Ruled forms are provided for the trial balance, schedules, and financial statements. A work sheet is provided, and its use is optional. The heading, with the exception of the date line, is printed on each form. Also, all general ledger account titles are printed on the work sheet. 1. Prepare schedules of accounts receivable and accounts payable, and compare the totals with the balances of the controlling accounts in the general ledger. 2. Prepare a trial balance at April 30. (Completing the work sheet is optional) 3. Make necessary adjustments. Record adjusting entries on page 6 of the general journal. Adjustment data are as follows: a) Inventory per physical count, April 30....................... $208,554.75 b) Office supplies on hand at April 30...... ...... .......... 1,600.00 c) Store supplies on hand at April 30. . 3,005.00 d) Prepaid Insurance: Transfer 1/12 of the premium paid on April 2 to expense. Depreciation for the month: e) Equipment......... 1,250.00 f) Building ........ 2,475.00 g) Interest earned on note receivable. 30.00 h) Accrued salaries at April 30: Sales salaries....... 1,200.00 Office salaries ..... ..... 500.00 Record the estimate of customer returns of this month's sales Sales 4470 i) Customer refunds.. 4,470.00 Curt lof Payable W70 (debit Sales, credit Customer Refunds Payable) 3,190.00 1196 (debit Estimated Returns Inventory, credit Cost of Goods Sold) Returns inventory.................... Estretes laver 3/4 cogs mind olidarnotot nuhlicly accessible website, in whole or in part. 4. Prepare an income statement, a statement of owner's equity, and a balance sheet. 5. Journalize the adjusting entries and post to the general ledger. 6. Journalize the closing entries on nage 7 of the general journal. Post to the general ledger, indicating closed accounts by inserting a horizontal line in both balance columns 7. Prepare a post-closing trial balance. Carefully read the introduction and see on the inside cover of 100 deer (CLGL) software ins GENERAL LEDGER SOFTWARE INSTRUCTIONS Carefully read the introduction and general instructions to the Fit & Fashionable practice set on pages 1-3, and review the chart of accounts on the inside cover of Booklet 2. Follow the steps below to complete this practice set using the Cengage Learning General Ledger (CLGL) software inside the CengageNOW learning management system. 1. This practice set is broken into three separate assignment parts, each graded separately. When you begin the second and third parts, all account balances will be set correctly for the beginning of that part, in order to prevent any previous errors from compounding. 2. To access additional help with the General Ledger functions, click on the Help button that appears near the bottom of the screen. (Note that you may need to scroll down and over to see this button.) 3. All account setups and opening balances required to begin this problem are loaded when you select the problem from the CengageNOW assignment menu. Click on the Save and Exit button at the bottom of your screen at any point to save your work if you need to stop working to continue later. Your work will automatically be restored when you retum. 4. For Parts 1 and 2: a. Set the System Date near the bottom of the screen to 4/01/18 for Part 1, or 4/16/18 for Part 2. (Note that you may need to scroll down to see the System Date box.) b. Enter the journal entries required (if any) from the transactions or source documents dated April I through April 15 for Part I, or those dated April 16 through April 30, up to but not including the Adjusting Entries, for Part 2. Click on the General Ledger tab, and then select the appropriate journal entry from the Tasks menu in the left menu bar, using the following criteria: Record the purchase of inventory on account only, and any other transactions with credits to Accounts Payable, in the Purchases Journal. Record sales of inventory on account only in the Sales Journal, using the invoice number as the reference. (Note that this journal is called the Revenue Journal in some texts.) Record ALL cash payments, for whatever reason, in the Cash Payments Journal, using the check number as the reference. Record ALL cash receipts, including cash sales, in the Cash Receipts Journal Record adjustments and any other transactions that do not fit the above criteria in the General Journal. Detailed instructions for entering transactions in each journal are found in the online instructions attached to each part of the set. GENERAL LEDGER Income Statement Accounts Balance Sheet Accounts REVENUE ASSETS 4100 Sales Current Assets COSTS AND EXPENSES 1110 Cash Il Notes Receivable 5100 Cost of Goods Sold 1112 Accounts Receivable Selling Eyes 1113 Interest Receivable 1114 Inventory 5200 Sales Salaries Expense 15 Estimated Returns Inventory 5210 Advertising Expense 1116 Office Supplies $220 Store Supplies Expense 1117 Store Supplies 5290 Miscellaneous Selling Expense 1118 Prepaid Insurance Administrative Expenses Plant Assets 5300 Office Salaries Expense 1120 Land 5320 Depreciation Expense-Equipment 1122 Building 5330 Insurance Expense 1123 Accumulated Depreciation 5340 Office Supplies Expense Building 5350 Depreciation Expense-Building 1124 Equipment 5390 Miscellaneous Administrative 1125 Accumulated Depreciation- Expense Equipment OTHER REVENUE LIABILITIES 6100 Interest Revenue Current Liabilities 2100 Accounts Payable OTHER EXPENSE 2110 Salaries Payable 7100 Interest Expense 2120 Customer Refunds Payable Long-Term Liabilities 2150 Notes Payable OWNER'S EQUITY 3100 Marty Chavez, Capital 3110 Marty Chavez, Drawing 3120 Income Summary ACCOUNTS RECEIVABLE LEDGER All Access Fitness Center Body Excellence Fitness Club Cory's Gym in the Grove Miami Health Club Pine Bay Fitness Club Rockdale Gym The Sun Set Recreation Center Westwood Boxing Gym ACCOUNTS PAYABLE LEDGER Alexus Fitness Connection Fit & Fab Health Products Fizzy-Cal Network HeartFit Enterprises Muscles R, Distributors Sports Magic Warehouse Fit & Fashionable A 800 Coco Drive, Coconut Grove, FL 33133 NARRATIVE OF TRANSACTIONS Record the following transactions in the appropriate journals. April 1 Purchased merchandise on Account April 4 from Alexus Fitness Connection, $13.865.00. Terms are a/30 Sold merchandise on account, Invoice 4 No. 301, to Miami Health Club for the net amount of $5,301.60. The Cost of Goods Sold is $3,864.00. 5 Credit term for all sales on account are 2/10, 1/30. Credit sales are recorded net of the 2% discount assuming customers will take the discount. Fit & 5 Fashionable uses a perpetual inventory system and therefore records the cost of goods sold as well as the sale. 6 1 Issued Check No. 2201 for $14,268.80 to Alexus Fitness Connection in payment of its invoice of March 6. 2 Received a check for $14,406.00 from Body Excellence Fitness Club in payment of our invoice of March 27 for $14,700.00, less discount 2 Issued Check No. 2202 for $5,700.00 to Harvey Insurance Company as a prepayment of insurance for a 12- month policy. 3 Issued Check No. 2203 for $46,480.00 8 to Fizzy-Cal Network in payment of its invoice of March 7 (no discount). 3 Sold merchandise on account, Invoice No. 302, to All Access Fitness Center for the net amount of $9,364.29. The Cost of Goods Sold is $6,825.00. 3 Received a check from Cory's Gym in the Grove for $12,348.00 in payment of our invoice of March 27. Issued Check No. 2204 for $14,000.00 to HeartFit Enterprises in payment of its invoice of March 28. Received a check for $6,174.00 from The Sun Set Recreation Center in payment of our invoice of March 8. Sold merchandise on account, Invoice No. 303, to Westwood Boxing Gym for the net amount of $27,306.48. The Cost of Goods Sold is $19,903.68. Purchased merchandise on account from Sports Magic Warehouse, $49,519.75. Terms are n/30. Cash sales for April 1-6 were $26,600.00. The Cost of Goods Sold is $18,024.00. Reminder: Record the following separate deposits in the checkbook register: the $26,600.00 of cash sales and the total of the checks received as payments on account this week. Received a check for $8,232.00 from Westwood Boxing Gym in payment of our invoice of March 29 for $8,400.00, less discount. Purchased merchandise on account from Fit & Fab Health Products, $5,230.00, terms 2/10, 1/30. Record this purchase net of the discount. Sold merchandise on account, Invoice No. 304, to The Sun Set Recreation Center for the net amount of $21,756.88. The Cost of Goods Sold is $15,858.00. 65 edu l eshlechsite inhole or in part part April 15) Received a check for $27,306.48 from Westwood Boxing Gym in payment of Invoice No. 303. April 8 Received a check for $10,976.00 from Pine Bay Fitness Club in payment of our invoice of March 30. 9 Purchased the following on account from Fizzy-Cal Network: display (charge to Store Supplies), S1,800.00; merchandise, $9,600.00 Total: $11,400.00. Terms are n/30. 9 Issued Credit Memorandum No. 107 to The Sun Set Recreation Center for merchandise returned on Invoice No. 304 of April 8 for the discounted price of $823.20. The Cost of Goods Sold is $600.00. 10 Issued Check No. 2205 for $175.00 to Marty Chavez for customer entertain- ment (charge to Miscellaneous Selling Expense). 10 Sold merchandise on account, Invoice No. 305, to Rockdale Gym for the net amount of $13,373.86. The Cost of Goods Sold is $9,412.00. 11 Received Credit Memorandum No. 432 from Fit & Fab Health Products for merchandise returned, $875.00. Record this return net of the discount, $857.50. 11 Received a check for $300.00 from SupplyMax for return of store supplies that were originally purchased for cash. 11 Received a check for $5,301.60 from Miami Health Club in payment of Invoice No. 301. 12 Received a check for $9,364.29 from All Access Fitness Center in payment of Invoice No. 302. 13 Issued Check No. 2206 for $13,000.00 to Payroll for biweekly salaries: sales salaries, $8,000.00; office salaries, $5,000.00 Cash sales for April 8-13 were $36,120.00. The Cost of Goods Sold is $24,910.80. Reminder: Record the following separate deposits in the checkbook register: the $36,120.00 of cash sales and the total of the checks received as payments on account this week. VW Gornal - COSTayutis Jaya .casniccy's Fit & Fashionable 800 Coco Drive, Coconut Grove, FL 33133 DESCRIPTION OF THE COMPANY Fit & Fashionable is mainly a wholesaler of fitness equipment and apparel, strategically located in Coconut Grove, FL. The clientele of Fit & Fashionable consists primarily of local gyms, wellness centers, retail outlets of sports equipment and apparel, and the general public, Fit & Fashionable is owned and operated by Marty Chavez. You are employed to maintain the accounts and prepare financial statements for Fit & Fashionable. This practice set includes the transactions completed during April, which are intended to illustrate general principles of accounting rather than the techniques of the accounting system of a particular business. You are to analyze, record, and post these transactions for April. You will then journalize entries for accounts requiring adjustment, prepare month-end financial reports, and complete the closing process. The information below contains a description of the contents of the practice set and instructions for completing the project manually. The practice set can also be completed utilizing the Cengage Learning General Ledger (CLGL) software, which is available online at CengageBrain.com. Instructions for using this general ledger software are provided on pages 3-5. BOOKS OF ACCOUNT Journals Ledgers The following journals are included in this The following ledgers are included in Booklet 2: booklet: 1. General Ledger 1. General Journal 2. Accounts Receivable Ledger 2. Revenue Joumal (also called a Sales 3. Accounts Payable Ledger Journal) 3. Purchases Journal 4. Cash Receipts Journal 5. Cash Payments Journal A complete chart of accounts and a complete list of all customers and creditors are provided on the inside front cover of Booklet 2. In the general ledger, all accounts have been opened and the account balances as of April 1, the beginning of a new fiscal period, have been entered. In the accounts receivable ledger and the accounts payable ledger, all accounts have been opened and all amounts due or owed are shown. MANUAL INSTRUCTIONS This practice set is designed to be used with the business forms and/or with the Narrative of Transactions, both of which may be found in Booklet 3. etor. Marty sing the trial balapith the works Journalizing Transactions The business forms are the source of information regarding the transactions and are the basis for the journal entries. Opeo Booklet 3 and follow the instructions contained in it. Using the business forns and/or the narrative, begin journalizing the transactions. (Note: Post daily to the subsidiary ledgers.) Posting to the General Ledger 1. Total each column of the various special journals. Ensure that total debits equal total credits in each journal 2. Post all items that need to be posted individually to the general ledger. The general ledger account balances do not need to be determined until the posting is completed. Use the printed page numbers in your posting references. 3. Post the appropriate totals in the special journals to their respective accounts in the general ledger. Determine the balance of each account. The cash balance on April 30 should be $146,131.01. Month-End Processing Since the proprietor, Marty Chavez, considers each month to be a separate fiscal period, you must now complete month-end processing. Ruled forms are provided for the trial balance, schedules, and financial statements. A work sheet is provided, and its use is optional. The heading, with the exception of the date line, is printed on each form. Also, all general ledger account titles are printed on the work sheet. 1. Prepare schedules of accounts receivable and accounts payable, and compare the totals with the balances of the controlling accounts in the general ledger. 2. Prepare a trial balance at April 30. (Completing the work sheet is optional) 3. Make necessary adjustments. Record adjusting entries on page 6 of the general journal. Adjustment data are as follows: a) Inventory per physical count, April 30....................... $208,554.75 b) Office supplies on hand at April 30...... ...... .......... 1,600.00 c) Store supplies on hand at April 30. . 3,005.00 d) Prepaid Insurance: Transfer 1/12 of the premium paid on April 2 to expense. Depreciation for the month: e) Equipment......... 1,250.00 f) Building ........ 2,475.00 g) Interest earned on note receivable. 30.00 h) Accrued salaries at April 30: Sales salaries....... 1,200.00 Office salaries ..... ..... 500.00 Record the estimate of customer returns of this month's sales Sales 4470 i) Customer refunds.. 4,470.00 Curt lof Payable W70 (debit Sales, credit Customer Refunds Payable) 3,190.00 1196 (debit Estimated Returns Inventory, credit Cost of Goods Sold) Returns inventory.................... Estretes laver 3/4 cogs mind olidarnotot nuhlicly accessible website, in whole or in part. etor. Marty sing the trial balapith the works Journalizing Transactions The business forms are the source of information regarding the transactions and are the basis for the journal entries. Opeo Booklet 3 and follow the instructions contained in it. Using the business forns and/or the narrative, begin journalizing the transactions. (Note: Post daily to the subsidiary ledgers.) Posting to the General Ledger 1. Total each column of the various special journals. Ensure that total debits equal total credits in each journal 2. Post all items that need to be posted individually to the general ledger. The general ledger account balances do not need to be determined until the posting is completed. Use the printed page numbers in your posting references. 3. Post the appropriate totals in the special journals to their respective accounts in the general ledger. Determine the balance of each account. The cash balance on April 30 should be $146,131.01. Month-End Processing Since the proprietor, Marty Chavez, considers each month to be a separate fiscal period, you must now complete month-end processing. Ruled forms are provided for the trial balance, schedules, and financial statements. A work sheet is provided, and its use is optional. The heading, with the exception of the date line, is printed on each form. Also, all general ledger account titles are printed on the work sheet. 1. Prepare schedules of accounts receivable and accounts payable, and compare the totals with the balances of the controlling accounts in the general ledger. 2. Prepare a trial balance at April 30. (Completing the work sheet is optional) 3. Make necessary adjustments. Record adjusting entries on page 6 of the general journal. Adjustment data are as follows: a) Inventory per physical count, April 30....................... $208,554.75 b) Office supplies on hand at April 30...... ...... .......... 1,600.00 c) Store supplies on hand at April 30. . 3,005.00 d) Prepaid Insurance: Transfer 1/12 of the premium paid on April 2 to expense. Depreciation for the month: e) Equipment......... 1,250.00 f) Building ........ 2,475.00 g) Interest earned on note receivable. 30.00 h) Accrued salaries at April 30: Sales salaries....... 1,200.00 Office salaries ..... ..... 500.00 Record the estimate of customer returns of this month's sales Sales 4470 i) Customer refunds.. 4,470.00 Curt lof Payable W70 (debit Sales, credit Customer Refunds Payable) 3,190.00 1196 (debit Estimated Returns Inventory, credit Cost of Goods Sold) Returns inventory.................... Estretes laver 3/4 cogs mind olidarnotot nuhlicly accessible website, in whole or in part. 4. Prepare an income statement, a statement of owner's equity, and a balance sheet. 5. Journalize the adjusting entries and post to the general ledger. 6. Journalize the closing entries on nage 7 of the general journal. Post to the general ledger, indicating closed accounts by inserting a horizontal line in both balance columns 7. Prepare a post-closing trial balance. Carefully read the introduction and see on the inside cover of 100 deer (CLGL) software ins GENERAL LEDGER SOFTWARE INSTRUCTIONS Carefully read the introduction and general instructions to the Fit & Fashionable practice set on pages 1-3, and review the chart of accounts on the inside cover of Booklet 2. Follow the steps below to complete this practice set using the Cengage Learning General Ledger (CLGL) software inside the CengageNOW learning management system. 1. This practice set is broken into three separate assignment parts, each graded separately. When you begin the second and third parts, all account balances will be set correctly for the beginning of that part, in order to prevent any previous errors from compounding. 2. To access additional help with the General Ledger functions, click on the Help button that appears near the bottom of the screen. (Note that you may need to scroll down and over to see this button.) 3. All account setups and opening balances required to begin this problem are loaded when you select the problem from the CengageNOW assignment menu. Click on the Save and Exit button at the bottom of your screen at any point to save your work if you need to stop working to continue later. Your work will automatically be restored when you retum. 4. For Parts 1 and 2: a. Set the System Date near the bottom of the screen to 4/01/18 for Part 1, or 4/16/18 for Part 2. (Note that you may need to scroll down to see the System Date box.) b. Enter the journal entries required (if any) from the transactions or source documents dated April I through April 15 for Part I, or those dated April 16 through April 30, up to but not including the Adjusting Entries, for Part 2. Click on the General Ledger tab, and then select the appropriate journal entry from the Tasks menu in the left menu bar, using the following criteria: Record the purchase of inventory on account only, and any other transactions with credits to Accounts Payable, in the Purchases Journal. Record sales of inventory on account only in the Sales Journal, using the invoice number as the reference. (Note that this journal is called the Revenue Journal in some texts.) Record ALL cash payments, for whatever reason, in the Cash Payments Journal, using the check number as the reference. Record ALL cash receipts, including cash sales, in the Cash Receipts Journal Record adjustments and any other transactions that do not fit the above criteria in the General Journal. Detailed instructions for entering transactions in each journal are found in the online instructions attached to each part of the set. GENERAL LEDGER Income Statement Accounts Balance Sheet Accounts REVENUE ASSETS 4100 Sales Current Assets COSTS AND EXPENSES 1110 Cash Il Notes Receivable 5100 Cost of Goods Sold 1112 Accounts Receivable Selling Eyes 1113 Interest Receivable 1114 Inventory 5200 Sales Salaries Expense 15 Estimated Returns Inventory 5210 Advertising Expense 1116 Office Supplies $220 Store Supplies Expense 1117 Store Supplies 5290 Miscellaneous Selling Expense 1118 Prepaid Insurance Administrative Expenses Plant Assets 5300 Office Salaries Expense 1120 Land 5320 Depreciation Expense-Equipment 1122 Building 5330 Insurance Expense 1123 Accumulated Depreciation 5340 Office Supplies Expense Building 5350 Depreciation Expense-Building 1124 Equipment 5390 Miscellaneous Administrative 1125 Accumulated Depreciation- Expense Equipment OTHER REVENUE LIABILITIES 6100 Interest Revenue Current Liabilities 2100 Accounts Payable OTHER EXPENSE 2110 Salaries Payable 7100 Interest Expense 2120 Customer Refunds Payable Long-Term Liabilities 2150 Notes Payable OWNER'S EQUITY 3100 Marty Chavez, Capital 3110 Marty Chavez, Drawing 3120 Income Summary ACCOUNTS RECEIVABLE LEDGER All Access Fitness Center Body Excellence Fitness Club Cory's Gym in the Grove Miami Health Club Pine Bay Fitness Club Rockdale Gym The Sun Set Recreation Center Westwood Boxing Gym ACCOUNTS PAYABLE LEDGER Alexus Fitness Connection Fit & Fab Health Products Fizzy-Cal Network HeartFit Enterprises Muscles R, Distributors Sports Magic Warehouse Fit & Fashionable A 800 Coco Drive, Coconut Grove, FL 33133 NARRATIVE OF TRANSACTIONS Record the following transactions in the appropriate journals. April 1 Purchased merchandise on Account April 4 from Alexus Fitness Connection, $13.865.00. Terms are a/30 Sold merchandise on account, Invoice 4 No. 301, to Miami Health Club for the net amount of $5,301.60. The Cost of Goods Sold is $3,864.00. 5 Credit term for all sales on account are 2/10, 1/30. Credit sales are recorded net of the 2% discount assuming customers will take the discount. Fit & 5 Fashionable uses a perpetual inventory system and therefore records the cost of goods sold as well as the sale. 6 1 Issued Check No. 2201 for $14,268.80 to Alexus Fitness Connection in payment of its invoice of March 6. 2 Received a check for $14,406.00 from Body Excellence Fitness Club in payment of our invoice of March 27 for $14,700.00, less discount 2 Issued Check No. 2202 for $5,700.00 to Harvey Insurance Company as a prepayment of insurance for a 12- month policy. 3 Issued Check No. 2203 for $46,480.00 8 to Fizzy-Cal Network in payment of its invoice of March 7 (no discount). 3 Sold merchandise on account, Invoice No. 302, to All Access Fitness Center for the net amount of $9,364.29. The Cost of Goods Sold is $6,825.00. 3 Received a check from Cory's Gym in the Grove for $12,348.00 in payment of our invoice of March 27. Issued Check No. 2204 for $14,000.00 to HeartFit Enterprises in payment of its invoice of March 28. Received a check for $6,174.00 from The Sun Set Recreation Center in payment of our invoice of March 8. Sold merchandise on account, Invoice No. 303, to Westwood Boxing Gym for the net amount of $27,306.48. The Cost of Goods Sold is $19,903.68. Purchased merchandise on account from Sports Magic Warehouse, $49,519.75. Terms are n/30. Cash sales for April 1-6 were $26,600.00. The Cost of Goods Sold is $18,024.00. Reminder: Record the following separate deposits in the checkbook register: the $26,600.00 of cash sales and the total of the checks received as payments on account this week. Received a check for $8,232.00 from Westwood Boxing Gym in payment of our invoice of March 29 for $8,400.00, less discount. Purchased merchandise on account from Fit & Fab Health Products, $5,230.00, terms 2/10, 1/30. Record this purchase net of the discount. Sold merchandise on account, Invoice No. 304, to The Sun Set Recreation Center for the net amount of $21,756.88. The Cost of Goods Sold is $15,858.00. 65 edu l eshlechsite inhole or in part part April 15) Received a check for $27,306.48 from Westwood Boxing Gym in payment of Invoice No. 303. April 8 Received a check for $10,976.00 from Pine Bay Fitness Club in payment of our invoice of March 30. 9 Purchased the following on account from Fizzy-Cal Network: display (charge to Store Supplies), S1,800.00; merchandise, $9,600.00 Total: $11,400.00. Terms are n/30. 9 Issued Credit Memorandum No. 107 to The Sun Set Recreation Center for merchandise returned on Invoice No. 304 of April 8 for the discounted price of $823.20. The Cost of Goods Sold is $600.00. 10 Issued Check No. 2205 for $175.00 to Marty Chavez for customer entertain- ment (charge to Miscellaneous Selling Expense). 10 Sold merchandise on account, Invoice No. 305, to Rockdale Gym for the net amount of $13,373.86. The Cost of Goods Sold is $9,412.00. 11 Received Credit Memorandum No. 432 from Fit & Fab Health Products for merchandise returned, $875.00. Record this return net of the discount, $857.50. 11 Received a check for $300.00 from SupplyMax for return of store supplies that were originally purchased for cash. 11 Received a check for $5,301.60 from Miami Health Club in payment of Invoice No. 301. 12 Received a check for $9,364.29 from All Access Fitness Center in payment of Invoice No. 302. 13 Issued Check No. 2206 for $13,000.00 to Payroll for biweekly salaries: sales salaries, $8,000.00; office salaries, $5,000.00 Cash sales for April 8-13 were $36,120.00. The Cost of Goods Sold is $24,910.80. Reminder: Record the following separate deposits in the checkbook register: the $36,120.00 of cash sales and the total of the checks received as payments on account this week