John McRoe opened a tennis resort in June 20--. Most guests register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. Guests stay at an adjacent hotel. The tennis resort provides lunch and dinner. Dining and exercise facilities are provided in a building rented by McRoe. A dietitian, masseuse, physical therapist, and athletic trainers are on call to assure the proper combination of diet and exercise. The chart of accounts and transactions for the month of June are provided below. McRoe uses the modified cash basis of accounting.

McRoe Tennis Resort Chart of Accounts

Assets:

Cash

Office Supplies

Food Supplies

Tennis Facilities

Accum. Depr.- Tennis Facility

Excercise Equipment

Accum. Depr.-Excercise Equip.

Liabilities:

Accounts Payable

Revenue:

Registration Fees

Expenses

Wages Expense

Rent Expense

Office Supplies Expense

Food Supplies Expense

Phone Expense Liabilities

Utilities Expense

Insurance Expense

Postage Expense

Depr. Exp.Tennis Facilities

Depr. Exp.Exercise Equip.

Owners Equity:

Owners Equity

John McRoe, Capital

John McRoe, Drawing

Income Summary

June 1 McRoe invested cash in the business, $90,000.

1 Paid for new exercise equipment, $9,000.

2 Deposited registration fees in the bank, $15,000.

2 Paid rent for month of June on building and land, $2,500.

2 Rogers Construction completed work on new tennis courts that cost $70,000. The estimated useful life of the facility is five years, at which time the courts will have to be resurfaced. Arrangements were made to pay the bill in July.

3 Purchased food supplies on account from Au Naturel Foods, $5,000.

5 Purchased office supplies on account from Gordon Office Supplies, $300.

7 Deposited registration fees in the bank, $16,200.

10 Purchased food supplies on account from Au Naturel Foods, $6,200.

10 Paid wages to staff, $500. 14 Deposited registration fees in the bank, $13,500.

16 Purchased food supplies on account from Au Naturel Foods, $4,000.

17 Paid wages to staff, $500. 18 Paid postage, $85.

21 Deposited registration fees in the bank, $15,200.

24 Purchased food supplies on account from Au Naturel Foods, $5,500.

24 Paid wages to staff, $500. 28 Deposited registration fees in the bank, $14,000.

30 Purchased food supplies on account from Au Naturel Foods, $6,000.

30 Paid wages to staff, $500. 30 Paid Au Naturel Foods on account, $28,700. 30 Paid utility bill, $500.

30 Paid phone bill, $120.

30 McRoe withdrew cash for personal use, $1,500.

REQUIRED

1. Enter the transactions in a combination journal (page 1). Establish special columns for Registration Fees (credit), Wages Expense (debit), and Food Supplies (debit).

2. Prove the combination journal.

3. Post these transactions to a general ledger. 4. Prepare a trial balance as of June 30.