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help needed In April 2023, Sarah Jones created a new business, IthacaDeep, Incorporated, offering therapeutic deep tissue massage for stress reduction, pain management, injury recovery,
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In April 2023, Sarah Jones created a new business, IthacaDeep, Incorporated, offering therapeutic deep tissue massage for stress reduction, pain management, injury recovery, and relief from muscle strains and tightness experienced by anyone, especially athletes, fitness enthuslasts, runners, and physical laborers. You have been hired to record the transactions occurting in the first month of opetations. a. Received investment of cash by three organizers and issued to them a total of 380 shares of $0.01 par value stock with a market price of $40 per share. b. Borrowed $24,500 from a local bank, signing a note due in three years. c. Signed a one-year lease for a space near a health club, paying $1,050 for April rent and $3,150 for rent for May, June, and July. d. Purchased equipment costing \$15,650, paying 20 percent in cash and owing the rest on account to the supplier, due in 60 doys. e. Ordered a business computer and printer from Dell for $3,350. f. Loaned $1,450 to an employee who signed a note due in three months. 9. Purchased supplies for $3,050 on account. h. Paid Facebook $2,450 as a budget for advertising. (Facebook charges the advertiser's account per click, drawing down the balance. The average click is $0.46.) 1. Paid $3,480 for 12 months of insurance coverage, with one-tweith covering April and the rest covering the remainder of the fiscal year (end of March next year). j. Purchased short-term investments for $13,600 cash. k. Along with her four other licensed massage therapists, Sarah and her team provided $43,800 of deep tissue service to clients in April who paid half in cash and agreed to pay the rest in May. 1. Paid employees $19,800 in wages for work in April. m. At the end of Aprib, received a $400 utility bill for the use of gas and electric in April. The bill will be paid in May. n. Paid $2.400 on the long-term note owed to the bank (ignore interest). 0. Earned and received $34 in interest on the shortterm investments. p. Sent the team to Boston in April to recelve additional specialty training, costing thacapeep $2,550cash. q. Received $1,850 from clients for a series of services to be performed beginning in May. Required: 1. Prepare journal entries for each transaction. 2. Post the effects of the transactions to the T-accounts. 3. Prepare an unadjusted trial balance for lthacaDeep, Incorporated, at the end of April. 4. Prepore an unadjusted classified income statement, statement of stockholders' equity, and classitied balance sheet from the trial balance created in requirement (3) above. 5. Compute the following ratios: (1) current ratio and (2) net profit margin ratio Step by Step Solution
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