% Cont Problem (book/static) Question He Adam Mazella opened Fitness Equipment Doctor, Inc., on March 1, 2018. On The following transactions occurred during the month of June: June 1, Fitness Equipment Doctor, Inc., expanded its business and began selling (Click the icon to view the transactions.) and installing gym equipment. The post-closing trial balance for Fitness Equipment Doctor, Inc., as of May 31, 2018, is presented next. Read the requirements (Click the icon to view the May post-closing trial balance.) ed Requirement 2. The four-column ledger accounts, together with their beginning balances at May 31, have been opened for you. Post the transactions to the ledge creating new ledger accounts as necessary, omit posting references. Calculate the new account balances. We will post the transactions to the ledger one transaction at a time, beginning with the transaction from the 2nd. (For any accounts with a zero balance after posting, enter a "0" on the normal side of the account under the Balance column) Jun 2: Paid the receptionist's salary, which was accrued on May 31. (Click the icon to view the journal entry you prepared in Requirement 1.) stion Cor Cash Post Ref. Date Item Debit Credit Balance Debit Credit 23,410 May Jun 31 Bal 2 urse (ACCU Salaries payable Enter any number in the edit fields and then click Check Answer Clear All Check Answer 48 parts remaining Jun 2 Paid the receptionist's salary, which was accrued on May 31 3 Purchased $16.500 of merchandise on account from A to Z Equipment, Inc. Terms, 2/15, n/30, FOB shipping point. 4 Received $5,800 payment from credit customers for May purchases. 5 Purchased $225 of supplies. Paid cash. 6 Paid freight charges of $275 related to the June 3 purchase. 8 Sold a treadmill for $4,200 (cost, $2,300) on account to B. Sandoval. Terms, 1/15, n/30, FOB shipping point. 10 Purchased office furniture for $1,600. Paid cash. 11 Paid advertising expense, $565. 12 Returned defective gym equipment, which was purchased on June 3. Received a $1,900 credit from A to Z Equipment, Inc. 13 Sold gym equipment for $6,800 (cost, $3,700) to a cash customer 14 Provided repair services to cash customers, $865. 15 Granted B. Sandoval a $300 allowance because of imperfections she detected upon receiving her treadmill. 16 Paid receptionist's salary, $675. 17 Paid A to Z Equipment, Inc. the amount due from the June 3 purchase in full. 19 Purchased $13.400 of inventory on account from Fitness Machines, Inc. Terms, 2/10, n/30, FOB destination. 21 Sold gym equipment for $9,500 (cost, $5,250) on account to Body in Motion, Inc. Terms, 3/10, n/30, FOB destination 22 Received payment in full from B. Sandoval for the June 8 sale. 24 Paid freight charges of $435 to have the gym equipment sold to Body in Motion, Inc. on June 21 delivered. 25 Purchased repair equipment on account from Equipment Masters, Inc., for $3,660. Terms, n/30, FOB destination. 27 Received payment in full from Body in Motion, Inc. for the June 21 sale. 28 Paid in full the invoice from the June 19 purchase from Fitness Machines, Inc. 30 Paid monthly utilities, $385. 30 Paid sales commissions of $1,760 to the sales staff. Fitness Equipment Doctor, Inc. Trial Balance May 31, 2018 Account Debit Credit Cash 23,410 8,000 Accounts receivable Supplies Prepaid rent 450 Land 4,800 16,000 2,100 $ 115 3,600 450 35,800 1,200 Furniture Accumulated depreciation, furniture Equipment Accumulated depreciation, equipment Vehicles Accumulated depreciation, vehicles Accounts payable Salaries payable Unearned service revenue Notes payable (long-term) Common stock Retained earnings 1,000 675 2,900 35,800 45,000 7,020 Total $ 94,160 $ 94,160 4 1. Journalize the transactions that occurred in June using the "net" method. 2. Using four-column accounts, post the transactions to the ledger, omit posting references. Calculate the new account balances. 3. Prepare the unadjusted trial balance for Fitness Equipment Doctor, Inc., at June 30. Journalize and post the adjusting entries for June based on the following adjustment information. a. Record the expired rent. (The Prepaid rent balance shown on the May 31, 2018 post-closing trial balance represents three months' worth of prepaid rent.) b. Supplies on hand, $285. c. Depreciation: equipment, $215; furniture, $65; vehicles, $460. d. A physical count of inventory revealed $16,295 of inventory on hand. e. Unearned service revenue still unearned as of June 30 was $275. f. Accrued the receptionist salary of $675. g. Record the estimated refund liability for June. The refund liability for the month was estimated to be 5 percent of the gross sales for the month. The cost of goods estimated to be returned was $560. 5. Prepare an adjusted trial balance for Fitness Equipment Doctor, Inc., at June 30. 6. Prepare the multistep income statement and statement of retained earnings for the month ended June 30. Also, prepare a classified balance sheet at June 30. Assume rent expense, salaries expense, depreciation expense, supplies expense, and utilities expense are general expenses. 7. Prepare and post closing entries. 8. Prepare a post-closing trial balance at June 30. % Cont Problem (book/static) Question He Adam Mazella opened Fitness Equipment Doctor, Inc., on March 1, 2018. On The following transactions occurred during the month of June: June 1, Fitness Equipment Doctor, Inc., expanded its business and began selling (Click the icon to view the transactions.) and installing gym equipment. The post-closing trial balance for Fitness Equipment Doctor, Inc., as of May 31, 2018, is presented next. Read the requirements (Click the icon to view the May post-closing trial balance.) ed Requirement 2. The four-column ledger accounts, together with their beginning balances at May 31, have been opened for you. Post the transactions to the ledge creating new ledger accounts as necessary, omit posting references. Calculate the new account balances. We will post the transactions to the ledger one transaction at a time, beginning with the transaction from the 2nd. (For any accounts with a zero balance after posting, enter a "0" on the normal side of the account under the Balance column) Jun 2: Paid the receptionist's salary, which was accrued on May 31. (Click the icon to view the journal entry you prepared in Requirement 1.) stion Cor Cash Post Ref. Date Item Debit Credit Balance Debit Credit 23,410 May Jun 31 Bal 2 urse (ACCU Salaries payable Enter any number in the edit fields and then click Check Answer Clear All Check Answer 48 parts remaining Jun 2 Paid the receptionist's salary, which was accrued on May 31 3 Purchased $16.500 of merchandise on account from A to Z Equipment, Inc. Terms, 2/15, n/30, FOB shipping point. 4 Received $5,800 payment from credit customers for May purchases. 5 Purchased $225 of supplies. Paid cash. 6 Paid freight charges of $275 related to the June 3 purchase. 8 Sold a treadmill for $4,200 (cost, $2,300) on account to B. Sandoval. Terms, 1/15, n/30, FOB shipping point. 10 Purchased office furniture for $1,600. Paid cash. 11 Paid advertising expense, $565. 12 Returned defective gym equipment, which was purchased on June 3. Received a $1,900 credit from A to Z Equipment, Inc. 13 Sold gym equipment for $6,800 (cost, $3,700) to a cash customer 14 Provided repair services to cash customers, $865. 15 Granted B. Sandoval a $300 allowance because of imperfections she detected upon receiving her treadmill. 16 Paid receptionist's salary, $675. 17 Paid A to Z Equipment, Inc. the amount due from the June 3 purchase in full. 19 Purchased $13.400 of inventory on account from Fitness Machines, Inc. Terms, 2/10, n/30, FOB destination. 21 Sold gym equipment for $9,500 (cost, $5,250) on account to Body in Motion, Inc. Terms, 3/10, n/30, FOB destination 22 Received payment in full from B. Sandoval for the June 8 sale. 24 Paid freight charges of $435 to have the gym equipment sold to Body in Motion, Inc. on June 21 delivered. 25 Purchased repair equipment on account from Equipment Masters, Inc., for $3,660. Terms, n/30, FOB destination. 27 Received payment in full from Body in Motion, Inc. for the June 21 sale. 28 Paid in full the invoice from the June 19 purchase from Fitness Machines, Inc. 30 Paid monthly utilities, $385. 30 Paid sales commissions of $1,760 to the sales staff. Fitness Equipment Doctor, Inc. Trial Balance May 31, 2018 Account Debit Credit Cash 23,410 8,000 Accounts receivable Supplies Prepaid rent 450 Land 4,800 16,000 2,100 $ 115 3,600 450 35,800 1,200 Furniture Accumulated depreciation, furniture Equipment Accumulated depreciation, equipment Vehicles Accumulated depreciation, vehicles Accounts payable Salaries payable Unearned service revenue Notes payable (long-term) Common stock Retained earnings 1,000 675 2,900 35,800 45,000 7,020 Total $ 94,160 $ 94,160 4 1. Journalize the transactions that occurred in June using the "net" method. 2. Using four-column accounts, post the transactions to the ledger, omit posting references. Calculate the new account balances. 3. Prepare the unadjusted trial balance for Fitness Equipment Doctor, Inc., at June 30. Journalize and post the adjusting entries for June based on the following adjustment information. a. Record the expired rent. (The Prepaid rent balance shown on the May 31, 2018 post-closing trial balance represents three months' worth of prepaid rent.) b. Supplies on hand, $285. c. Depreciation: equipment, $215; furniture, $65; vehicles, $460. d. A physical count of inventory revealed $16,295 of inventory on hand. e. Unearned service revenue still unearned as of June 30 was $275. f. Accrued the receptionist salary of $675. g. Record the estimated refund liability for June. The refund liability for the month was estimated to be 5 percent of the gross sales for the month. The cost of goods estimated to be returned was $560. 5. Prepare an adjusted trial balance for Fitness Equipment Doctor, Inc., at June 30. 6. Prepare the multistep income statement and statement of retained earnings for the month ended June 30. Also, prepare a classified balance sheet at June 30. Assume rent expense, salaries expense, depreciation expense, supplies expense, and utilities expense are general expenses. 7. Prepare and post closing entries. 8. Prepare a post-closing trial balance at June 30