External Transactions of Eagle Soccer Academy (2) Transaction Date Description (1) Dec. 1 Sell shares of common stock for $25,000 to obtain the funds necessary to start the business. Dec. 1 Borrow $10,000 from the local bank and sign a note promising to repay the full amount of the debt in three years. Dec. 1 Purchase equipment necessary for giving soccer training. $24,000 cash. Dec. 1 Pay one year of rent in advance, $6,000 ($500 per month). Dec. 6 Purchase supplies on account, $2,300. Dec. 12 Provide soccer training to customers for cash, $4,300. Dec. 17 Provide soccer training to customers on account, $2,000. (8) Dec. 23 Receive cash in advance for 12 soccer training sessions to be given in the future, $600. (9) Dec. 28 Pay salaries to employees, $2,800. Dec. 30 Pay cash dividends of $200 to shareholders. 10 2 Chapter 2 - Handout || Winter 2020 1. Enter the transactions for Eagle Soccer Academy (from the PowerPoint slides) by recording journal entries and posting to the related T-accounts: Cash Supplies Journal entries Accounts Accounts receivable DR CR Debit Credit DR CR DR CR Date 12/1 12/1 Don't forget to post to your T- accounts - 12/1 11 12 13 14 15 16 17 Prepaid rent DR CR Equipment DR CR Accounts payable CR 12/1 DR 12/6 18 12/12 Deferred revenue DR CR Notes payable DR CR Common stock DR CR 20 21 12/17 22 12/23 23 24 25 26 27 Dividends DR Revenue CR Expenses DR CR 12/28 CR DR 12/30 28 29 30 Total debits: Total credits: Total debits: Total credits: If you get out of balance, fix your mistake before moving 31 32 33