AEDE 2105 Managerial Records & AnalysisCourse Project Chapters 47; 12Spa-tacular has the following chart of accounts:AssetsRevenue111 Cash411 SpaServices113Accounts Receivable (A/R)412 Spa Merchandise Sales115 Allowance for Doubtful Accounts413 Sales Discounts118Office Supplies414 Sales Returns & Allowances121 Spa Merchandise Inventory131 Spa SuppliesCost of Goods Sold133 Prepaid Insurance511 Purchases141 Spa Equipment512 Freight-In142Accum. Deprec. -Spa Equip.513PurchasesReturns & Allowances514 Purchases DiscountLiabilitiesExpenses211 Accounts Payable (A/P)611 Wages Expense212Wages Payable612 Rent Expense231 Sales Tax Payable613 Office Supplies Expense614 Spa Supplies ExpenseOwners Equity615 Laundry Expense311 L. Nash, Capital616 Advertising Expense312 L. Nash, Drawing617 Utilities Expense313 Income Summary618 Insurance Expense620 Depreciation Expense-Equip625 Bad Debt Expense630 MiscellaneousExpense The following transactions were completed by Spa-tacular during the month of August. Tax rate on all sales is 8%.Aug1Nash deposited an additional $10,000 in thebusiness bank account.1Paid August rent $1,650,check number 1044.1Bought logo merchandise from Giftco $4,100 plus $180 freight; bill number 416, dated August 1st; terms 2/10, N/30.1Bought bath and beauty products from Spa Magic $3,562 plus $155 freight; bill number 5235, dated August 1st; terms 2/10, n/30.2Sold spa services on account to the Bryant family $650 (before tax), invoice number 20; terms 2/10, N/45.2Paid advertising expense for an August photo ad $455,check number 10453Bought a silk flower arrangement for the salon (MiscellaneousExpense)$87.90,check number 1046.3Paid Spa Magic for their bill 5033, $2,721 dated June 2, check number 1047.3Deposited Tory Ligmans payment on her account, $164.4Bought 5 cases of bottled water for clients (Spa Supplies) $45,check number 1048.4Bought a digital camera (Miscellaneous Expense) $482,check number 1049.4Purchased bulk office supplies on account from Office Supplies Warehouse $486,bill number 1417; terms N/30.5Deposited a partial payment of $87.50 from Jill Anson on her account.6Paid Giftco for their bill no. 316, dated July 5, $1,309, check number 1050.7Deposited 1stweeks cash sales: spa merchandise $1,630; spa services $3,350; sales tax collected $398.40.7Paid weeks wages $1,850,check number 1051.8Bought spa accessories from Spa Goods $1,120 plus $110 freight; bill number 387, dated August 8th; terms 2/10, N/30.9Sold spa services to Hunter Condos$1,294on account(before tax), invoice number 21; terms 2/10, N/45.10Deposited Graysons Lodge payment on their account for $351 and Hunter Condos payment on their account for $367.47.11Paid Golden Spa Supplies for their bill no. 1836, dated July 1, $490, check number 1052. 12Paid Giftco for bill number 416 dated August 1st$4,198(paid in full less applicable discount), check number 1053.13Sold spa services to Grayson Lodge $356(before tax) on account, invoice number 22; terms 2/10, N/45.14Purchased 3 new tanning beds (Spa Equipment) from Superior Equipment $5,685; bill number 1140, dated August 12th; terms N/30.14Deposited 2ndweeks cash sales: spa merchandise $1,330;spa services $2,340; sales tax collected $293.60.14Paid weeks wages $1,853,check number 1054.15Nash withdrew cash for personal use $1,500,check number 1055.16Paid August telephone bill $235,check number 1056.17Received payment in full from Hunter Condos, Invoice 21 dated August 9,less applicable discount $1,371.64.18Sold spa merchandise on account to Bryant family $375, invoice number 23; terms 2/10, N/45.18Paid Superior Equipment for their bill no. 3608, dated July 5, $420, check number 1057.20Boughtlogo merchandise from Logo Harbor Products $2,451 plus $144.00 freight; bill number 1680, dated August 20th; terms2/10, N/30.21Paid weekswages $1,847.50 check number 1058.21Deposited 3rdweeks cash sales; spa merchandise $2,220; spa services $2,810; sales tax collected $402.40.22Paid months laundry bill $95,check number 1059.23 Paid last months sales tax collected$2,720, check number 1060.25Paid on account to Logo Harbor Products,bill number 1680 dated August 20, less applicable discount $2,545.98,check number 1061.26Received payment in fullfrom Grayson Lodge $384.48 for invoice no. 22.27Issued Credit Memo No. 1 to Bryant Family,$88 for damaged goodsand $7.04 for sales tax.28Paid week wages $1,850,check number 1062.29Paid August utilities bill $255 check number 1063.30Paid Spa Magic,bill number 5235,in full $3,717 check number 1064.30Received credit memo 95 for damage spa accessories from Spa Goods $123.31Deposited end of monthscash sales: spa merchandise $2,030; spa services $4,176; sales tax collected $496.48. Instructions1.Record each transaction in the appropriate journal in date order. Note you should only use the general journal for transactions that do not belong on one of the four special journals. 2.In the special journals, post the column totals and each amount in the Other Accounts column to the appropriate account in the General Ledger (and subsidiary ledgers [A/R Ledger and A/P Ledger], if applicable). 3.Post the individual entries from the general journal to the general ledger and to the subsidiary ledgers (if applicable).4.Prepare the schedule of accounts receivable and the schedule of accounts payable as of August 31. 5.Copy the ending account balances in the general ledger to the trial balance column of the worksheet.6.Complete the Adjustments section of the worksheet using the following information:a.On August 31, a physical count of the spa merchandise inventory was taken, and the inventory was valued at $13,110.b.On August 31 a count of the spa supplies remaining in hand was valued at $345. Record an adjustment for the amount of spa supplies usedduring August.c.On August 31 a count of the office supplies remaining on hand was valued at $90. Record an adjustment for the amount of office supplies used during August.d.A review of the insurance records determined that $100 in liability insurance coverage has been used during August.e.Accrued wages as of August 31 was $1,425.f.The companys spa equipment is depreciated using the 150% declining balance method. The spa equipments useful life is 5 years. The equipment has a salvage value of $1,000. Record the adjustment for depreciation for one month.g.Spa-tacular uses the percent of credit sales method to estimate the amount of uncollectible accounts. Record an adjustment for this estimate as 2.5% of this months credit sales. 7.Complete the remaining columns on the worksheet and determine the amount of net income (or net loss). 8.Prepare a multi-step income statement, the statement of owners equity, and a balance sheet as of August 31. 9.Journalize and post the adjusting and closing entries.10.Prepare a post-closing trial balance as of August 31. 11.Complete the analyses (horizontal, vertical, and ratios) on the income statement and balance sheet.