Evergladiators Inc, a fitness gym and rock climbing park in Alexandria, Waterloo, began operations in September of the current year with the following transactions occurring during the month: Sep. 1 Sold 15,000 common shares (share capital) for $9 per share to the owners for cash; Alex Scott 7,500 shares and Jordan Davis 7,500 shares. 2 Purchased a site location for the business, consisting of land $20,000 and building $290,000. Paid cash of $65,000, with the vendor, Dunedin Developments Corp, taking the remainder as a promissory note, due in one year, at a rate of 8% interest per annum with interest paid at the end of each month. 3 Hired an employee to work as a personal trainer in the fitness gym, startin - mediately, and offered the employee a salary of $40,000 per year. 4 Paid for a one year business insurance policy for $2,400 and re corded the full amount as prepaid. 5 Sold gym fitness and rock climbing memberships to customers for the month of September in the amount of $14,500; receiving $8,900 in cash, with the remainder on account. 8 Purchased merchandise inventory for $5,300 on credit. 15 Paid wages of $1,450. 20 Collected $5,190 from customers on account. 25 Paid suppliers $4,800 on account for inventory purchased on September 8. 28 Received the utilities (heat, hydro, telephone, and internet) invoice for September usage of $834, and it is scheduled to be paid by automatic bank withdrawal on October 10. 30 Paid wages of $1,660. 30 Paid the interest owing to Dunedin Developments Corp for September. 30 Recognized one month's insurance expense that was used in September. 30 Recognized one month's building depreciation expense. The estimated residual value is $30,800 and the estimated useful life is 40 years. Requirements: 1. Prepare the formal journal entries in the general journal to record the precedirg transaction use the module 4 readings, chapter 2: The Accounting Process, section 2.4, Figure 2.2 as juide, (if no entry is required for any of the indicated transactions, explain why). 2. Create a table to analyze the preceding transactions in terms of their tlects on the accounting equation of Evergladiators Inc. Use the module 2 readings, chan ict 1: Introduction to Financial Accounting, section 1.5, page 19, as a guide. 3. Prepare the balance sheet of Evergladiators Inc as at September 30, after recording all the above the transactions. Use the module 4 readings, chapter 2: The Accounting Process, Exhibit 2-2 as a guide. Evergladiators Inc, a fitness gym and rock climbing park in Alexandria, Waterloo, began operations in September of the current year with the following transactions occurring during the month: Sep. 1 Sold 15,000 common shares (share capital) for $9 per share to the owners for cash; Alex Scott 7,500 shares and Jordan Davis 7,500 shares. 2 Purchased a site location for the business, consisting of land $20,000 and building $290,000. Paid cash of $65,000, with the vendor, Dunedin Developments Corp, taking the remainder as a promissory note, due in one year, at a rate of 8% interest per annum with interest paid at the end of each month. 3 Hired an employee to work as a personal trainer in the fitness gym, startin - mediately, and offered the employee a salary of $40,000 per year. 4 Paid for a one year business insurance policy for $2,400 and re corded the full amount as prepaid. 5 Sold gym fitness and rock climbing memberships to customers for the month of September in the amount of $14,500; receiving $8,900 in cash, with the remainder on account. 8 Purchased merchandise inventory for $5,300 on credit. 15 Paid wages of $1,450. 20 Collected $5,190 from customers on account. 25 Paid suppliers $4,800 on account for inventory purchased on September 8. 28 Received the utilities (heat, hydro, telephone, and internet) invoice for September usage of $834, and it is scheduled to be paid by automatic bank withdrawal on October 10. 30 Paid wages of $1,660. 30 Paid the interest owing to Dunedin Developments Corp for September. 30 Recognized one month's insurance expense that was used in September. 30 Recognized one month's building depreciation expense. The estimated residual value is $30,800 and the estimated useful life is 40 years. Requirements: 1. Prepare the formal journal entries in the general journal to record the precedirg transaction use the module 4 readings, chapter 2: The Accounting Process, section 2.4, Figure 2.2 as juide, (if no entry is required for any of the indicated transactions, explain why). 2. Create a table to analyze the preceding transactions in terms of their tlects on the accounting equation of Evergladiators Inc. Use the module 2 readings, chan ict 1: Introduction to Financial Accounting, section 1.5, page 19, as a guide. 3. Prepare the balance sheet of Evergladiators Inc as at September 30, after recording all the above the transactions. Use the module 4 readings, chapter 2: The Accounting Process, Exhibit 2-2 as a guide
