Glengerry Health Club

1. Make journal entries and prepare T-accounts for following transactions.

(1) In incorporating the business, two owners contributed $50,000 in cash and each received 5,000 shares of $10 par value common stock ($100,000 = 2 x $50,000)

(2) Bought property for $200,000 (land $50,000 and building $150,000) with 5 year note

(3) Purchased exercise equipments for $20,000 and paid accounts payable (30 days)

(4) Potential customer called in and inquired about membership for his 10 employees, which will be $50 each ($500 = 10 x $50).

(5) Sell 300 monthly club memberships for $50 each ($15,000 = 300 x $50) and received accounts receivable

(6) In addition to membership, Glengarry sell court time. Court fees are paid by time of use and amount to $5,000 (cash)

(7) Wage and salaries amount to $10,000 and was paid in cash

(8) Cost of utilities was $3,000 and was paid in cash

(9) Some members paid their membership before due. The amount received from members in payment of their account is $4,000

(10) Glengarry decided to pay dividends to each of capital stock owners of $1,000 on shares of stock ? 2 owners ? 2 x $1,000 = $2,000

2. Prepare a trial balance, balance sheet and income statement using 10 transactions above.