Christina's Crossfit Gym opened its doors for business in May 2020. As part of her opening activities, Christina is beginning to ramp up advertising, and she also is offering gift certificates. Following are the transactions that occurred during the month of May at Christina's Crossfit Gym (CCG). May 1 Paid $2,900 cash for an insurance policy that covers the period from June 1 until May 31 next year May 4 Ordered five new weight benches from Arnold's Weightlifting Equipment, Inc. for $240 each for future delivery May 7 Provided $790 of crossfit personal training services to customers on account. May Received supplies (such as chalk and cleaning materials) for a total of $920 on ho Jaccount to use at CCG. May 13 Received a bill for $46 for running an advertisement in the newspaper in May The bill was immediately paid in cash. May paid one-quarter of the amount owed from May 10. 16 May Issued $1,600 of gift certificates to customers for cash. ho May Obtained financing from the bank by signing a $5,800 two-year note payable. bo May Received two of the weight benches ordered on May 4 and paid the full amount 122 In cash for the two benches May Paid $480 cash for utility bills for electrical, water, and sewer services used and 125 billed in May Required: 1. For each of the transactions prepare journal entries, using the date of the transaction as the reference. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction lit View journal entry worksheet No General Journal 1 May 01 Credit Prepaid insurance Cash Debit 2.900 2.000 2 2 May 04 No Journal Entry Required 3 May 02 Accounts Receivable Service Revenge 790 790 HE Next Entry Required" in the first account field.) View transaction lit View Journal entry worksheet No Dato General Journal Debit Credit 1 May 01 Prepaid Insurance Cash 2,800 2.900 2 May 04 No Journal Entry Required N 3 May 07 Accounts Receivable Service Revenue 790 790 IN 4 May 10 Supplies Accounts Payable 920 920 IN 5 May 13 Advertising Expense Cash 46 46 6 May 16 Accounts Payable Cash 230 230 2 7 May 19 Cash Deferred Revenue 1,600 1.600 8 May 20 Cash Note Payable long term 5.800 5.800 0 May 22 Equipment Cash 480 480 10 May 25 Utilities Expense Cash 400 469 2. Calculate CCG's preliminary net income based upon the transactions above for the month of May Naast GOD ODD 1,600 Deferred Revenue 8 May 20 Cash 5,800 Note Payable (long-term) 9 May 22 Equipment Cash 480 10 May 25 Utilities Expense Cash 480 2. Calculate CCG's preliminary net income based upon the transactions above for the month of May. CCG's Preliminary Net Income
