Proprietor:

Ms. Ferntrees Gally

Name:

Muscle Up

Description:

Gymnasium and Health Club

The business has the following opening balances:

Stationery Supplies	$457
Gym Equipment	$18,478
Bank Loan (due 2022)	$24,273
Account Payable	$8,255
Motor Vehicle	$30,635
Account Receivable	$23,740
Cash At Bank	$19,493

Additional Information:

Closing stock of stationery supplies on 30/6 ($)	591
Gym equipment scrap value ($)	4,920
Gym equipment useful life (years)	3
Rent paid for (months)	4
Insurance paid for (months)	4
Motor vehicle scrap value ($)	5,118
Motor vehicle useful life (years)	3
Bank loan interest rates (% per year)	9

Transactions:

Date		Description	Amount	Date		Description	Amount
1-Jun		Paid General Insurance	$2,621	3-Jun		Rent of Business Premises	$ 4,007
3-Jun		Gym fees - Account	$1,179	4-Jun		Purchase stationery Supplies	$478
4-Jun		Equipment hiring expense - Account	$695	5-Jun		Advertising Expense - Account	$699
5-Jun		Motor Vehicle Expenses	$133	8-Jun		Staff Wages	$1,196
8-Jun		Squash fees - Account	$1,231	9-Jun		Cash Withdrawals by Owner	$580
10-Jun		Receive Payment from Account Customers	$1,924	12-Jun		Membership fees - Cash	$2,530
15-Jun		Motor Vehicle Expenses	$144	15-Jun		Sundry Expenses	$196
15-Jun		Staff Wages	$1,196	15-Jun		Purchase stationery Supplies	$340
16-Jun		Cash Withdrawals by Owner	$522	16-Jun		Payment to Account Payable	$651
17-Jun		Receive Payment from Account Customers	$1,613	17-Jun		Gym fees - Cash	$1,293
17-Jun		Sundry Expenses	$104	18-Jun		Squash fees - Account	$1,005
19-Jun		Squash fees - Cash	$2,282	20-Jun		Squash fees - Cash	$1,739
21-Jun		Advertising Expense - Cash	$458	22-Jun		Staff Wages	$1,196
22-Jun		Gym fees - Account	$956	23-Jun		Additional cash contributed by owner	$4,147
24-Jun		Equipment hiring expense - Cash	$373	25-Jun		Advertising Expense - Cash	$448
26-Jun		Membership fees - Cash	$2,427	27-Jun		Payment to Account Payable	$793
28-Jun		Gym fees - Cash	$1,608	29-Jun		Advertising Expense - Account	$650
29-Jun		Staff Wages	$1,196

Comments:

This business was purchased on 1 June.

You are required to prepare a general journal entry to incorporate the opening balances into the current period, including the balancing capital figure.

You will need to refer to the Additional Information section for your adjusting entries.

The rent and insurance period start on 1 June.

Show three types of revenue, namely gym fees, squash fees and membership fees. All revenues received were for the month of June.

Unless otherwise indicated, all transactions are on a cash basis. Use one general Account Receivable for all debtors and one general Account Payable for all creditors.

Your Balance Sheet should show assets and liabilities divided into current and non-current.

Staff work a 7-day week and are paid on the 8th day.

Assume all prepayments are initially recognised as an asset.

Please refer to the sheet below to be filled out:

Muscle Up-10 Column Worksheet Account Unadjusted TIB tments TIB Income Statement Balance Sheet DR CR DR CR DR CR DR CR DR CR Accrued Interest Revenue Cash A Bank Account Receivable Motor Vehide Prepaid Rent Acc. Depn-Motor Vehide Account Payable Bank Loan (due 2022) Accrued Interest Expense Accrued Stall Wages Motor Vehide Exp nterest Ex Insurance Ex Su Alowance for Doubtul Debis Fees Rev ncome Tax Payable Membership Rev uipment Hire Ex Stafonery Ex Pro Total