Project Details As you know, you were called in to help Nicole Dunn, who recently started a personal training business called DunnRite Training, Inc. Nicole began operations on August 1, 2023, and had limited activity in her first month. Nicole was pleased with your work and requested that you assist her with her financial records for September 2023. Nicole is an astute businessperson with limited experience with accounting and would like your assistance in understanding how her business activities should be interpreted. Activities for the month of September and specific deliverables are listed below.

NOTES: Use the information provided in the Midterm Project and Midterm Project Solution for background and beginning balance information for this assignment. DunnRite Training has adopted the allowance method of accounting for uncollectible accounts effective immediately.

The company estimates that 3% of its accounts receivable balance will be uncollectable.

Economic Events

September 1. DunnRite Training sold one-half of the training equipment purchased on August 1 for $4,200.

September 7. DunnRite Training purchased $5,200 in office supplies on account.

September 10. DunnRite hired a part-time trainer, Buff Bratola, who is paid a commission for all training performed. Payment is made to the trainer on the 10th and 25th of each month.

September 15. DunnRite Training received $5,000 cash for training services performed from September 1 to September 15.

September 15. DunnRite Training performed $12,000 of training services on account from September 1 to September 15. Payment is due in 30 days.

September 10. DunnRite Training purchased 200 logoed tank tops for $10 per tank and 150 logoed t-shirts for $12 per t-shirt. This inventory was purchased on account with payment due in 30 days.

September 20. DunnRite Training received $1,000 as a partial payment from DunnRite Scholastic Programs. DunnRite Scholastic Programs issued a 90 note at 7% interest for the remaining balance.

September 25. DunnRite Training paid $5,000 in dividends.

September 25. DunnRite Training paid the part-time trainer $2,300 for the training services provided between September 10 and September 25.

September 28. DunnRite received $2,800 from customers who previously received services on account.

September 29. DunnRite received notification that one of their clients, Jim Walker, has filed for bankruptcy. DunnRite does not expect to collect the balance of $500 on Mr. Walker's account.

September 30.

DunnRite Training received $7,000 cash for training services from September 16 to September 30.

September 30. DunnRite Training performed $16,000 of training services on account from September 16 to September 30. Payment is due in 30 days.

September 30 DunnRite sold 78 tanks during the month of September for $25 per tank and 97 t-shirts at $30 per t-shirt. All customers paid cash at the time of purchase.

September 30. DunnRite has extra cash on hand and decides to repay (principal and interest) the loan from Aqua Bank. There is no penalty for early payment.

September 30. The part-time trainer earned $700 in commissions between September 26 and September 30. Payment will be made on October 10.

September 30. Nicole completed an inventory of supplies and determined that $2,300 in supplies was on hand.

Assignment

1. Review the transactions and develop a chartofaccounts for DunnRiteTraining, Inc. The chart of accounts should list the name of the account, the type of account (e.g., asset, liability, revenue, etc.) and where the account will appear (e.g., balance sheet, income statement, etc.

2. Recordthetransactionsusingthehorizontalbalancesheetmethodthroughoutthe course minilectures.

Set up an Excel spreadsheet with all the accounts identified in part 1 of this assignment listed in the spreadsheet's columns. Accounts should appear in the following order:

Assets Liabilities Equity Revenue Expense

Record each transaction in the rows under the account name.

The last two columns should be for the statement of cash flows. Indicate the

amount of the change in cash (+,-) and the type of cash flow (e.g., Investing,

Financing, Operating)

Record any necessary adjusting entries in the spreadsheet.

Determine the ending balance in each account by summing each column.

3. Preparecomparative(AugustpresentedalongsideSeptember)financialstatements (income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows) for DunnRite Training, Inc.