What are the journal entries and adjust the financial statements? Need help

From: Team Lead Subject: Prepare Journal Entries - Run Forever I am following up on the client we discussed earlier today in our huddle. Running coaches and friends Dash, Sprint, and Bolt just bought a coaching company and gym, called Run Forever, from their friend, Speed. They've been the owners for the last quarter, but have no idea how to keep track of their business transactions and activities. They'd like to buy a new treadmill for their gym, but don't know if they have the cash to do it. They did jot down all the money they spent and all the money they received for the last quarter: 1. Paid Speed $100,000 to purchase the business 2. Each owner put $10,000 into the company bank account as Contributed Capital on April 1, 2021 3. Paid rent for April, May, June, on the first of each month; and prepaid for July on June 30, 2021, at $3,000 per month 4. Collected $17,000 in cash for coaching services from clients who pay at the end of each session 5. Charged $11,000 on client credit cards for coaching services from clients who pay at the end of each session; still awaiting payout from credit card companies 6. Collected $5000 from credit card companies for coaching services that were previously paid by clients on credit card at the end of each session 7. Collected $6,000 in cash from clients who signed up for a pack of 10 coaching sessions. Of these clients, half of the sessions remain to be used, even though the clients have already paid Run Forever the cash 8. Purchased a new spin bike for the gym for $900 on April 1, 2021. The bike has a useful life of 5 years 9. Used supplies throughout the quarter (paper towels, sanitizer, disposal masks). Did not keep track of the supplies used, but you went and checked their inventory and calculated that about $1,800 of supplies is still left 10. Did not pay or record salaries for themselves or their two other coaches, totaling $60,000 for the quarter 11. Insurance on the gym was prepaid by the previous owner for the entire 12 months starting January 1, 2021. Three months passed this quarter under the new owners. 12. Paid off a balance of $7,000 that had been owed on previously purchased weights and benches with a local supplier, leaving the company with no outstanding debt. They also gave us financial statements created by the previous owner for the quarter ended March 31, 2021, just before they bought the company on April 1, 2021. Your Team Lead Run Forever Balance Sheet As of March 31, 2021 LIABILITIES Accounts payable $ 7,000 $ $ 80,000 5,000 4,000 $ Total Liabilities $ 7,000 ASSETS Cash Accounts Receivable Supplies inventory Equipment $ 50,000 accumulate d depreciation $ (30,000) $ 20,000 $ 3,000 Prepaid insurance STOCKHOLDERS' EQUITY Common Stock Retained Earnings $ 18,000 $ 87,000 Total Stockholders' Equity $ 105,000 Total Assets $ 112,000 Total Liabilities +Stockholders' Equity $ 112,000 Run Forever Income Statement for the Quarter Ended March 31, 2021 Revenues Cost of Coaching Services (Coach Salaries) Gross Margin $ 70,000 $ 35,000 $ 35,000 Rent Expense Insurance Expense Depreciation Expense Supplies Expense $ (3,000) $ (1,000) $ 2,500) S (500) Total Expenses $ (7,000) Net Income $ 28,000 Run Forever Statement of Cash Flows for the Quarter Ended March 31, 2021 Cash from Operating Activities Net Income $ 28,000 Insurance Expense Depreciation Expense Supplies Expense Decrease in Accounts Receivable Increase in Accounts Payable Total cash from Operating Activities $ (1,000) $ (2,500) $ (500) $ 1,500 $ 2,000 $ 27,500 Cash from Investing Activities $ Cash from Financing Activities $ Net Increase in Cash $ 27,500 Run Forever Statement of Stockholder's Equity for the Quarter Ended March 31, 2021 Earnings Beginning Balance, January 1, 2021 Net Income Ending Balance, March 31, 2021 Common Additiona Stock, $1 I Paid In Retained par value Capital Total $ 3,000 $ 15,000 $59,000 $ 77,000 $ 28,000 $ 28,000 $ 3,000 $ 15,000 $ 87,000 $105,000 From: Team Lead Subject: Prepare Journal Entries - Run Forever I am following up on the client we discussed earlier today in our huddle. Running coaches and friends Dash, Sprint, and Bolt just bought a coaching company and gym, called Run Forever, from their friend, Speed. They've been the owners for the last quarter, but have no idea how to keep track of their business transactions and activities. They'd like to buy a new treadmill for their gym, but don't know if they have the cash to do it. They did jot down all the money they spent and all the money they received for the last quarter: 1. Paid Speed $100,000 to purchase the business 2. Each owner put $10,000 into the company bank account as Contributed Capital on April 1, 2021 3. Paid rent for April, May, June, on the first of each month; and prepaid for July on June 30, 2021, at $3,000 per month 4. Collected $17,000 in cash for coaching services from clients who pay at the end of each session 5. Charged $11,000 on client credit cards for coaching services from clients who pay at the end of each session; still awaiting payout from credit card companies 6. Collected $5000 from credit card companies for coaching services that were previously paid by clients on credit card at the end of each session 7. Collected $6,000 in cash from clients who signed up for a pack of 10 coaching sessions. Of these clients, half of the sessions remain to be used, even though the clients have already paid Run Forever the cash 8. Purchased a new spin bike for the gym for $900 on April 1, 2021. The bike has a useful life of 5 years 9. Used supplies throughout the quarter (paper towels, sanitizer, disposal masks). Did not keep track of the supplies used, but you went and checked their inventory and calculated that about $1,800 of supplies is still left 10. Did not pay or record salaries for themselves or their two other coaches, totaling $60,000 for the quarter 11. Insurance on the gym was prepaid by the previous owner for the entire 12 months starting January 1, 2021. Three months passed this quarter under the new owners. 12. Paid off a balance of $7,000 that had been owed on previously purchased weights and benches with a local supplier, leaving the company with no outstanding debt. They also gave us financial statements created by the previous owner for the quarter ended March 31, 2021, just before they bought the company on April 1, 2021. Your Team Lead Run Forever Balance Sheet As of March 31, 2021 LIABILITIES Accounts payable $ 7,000 $ $ 80,000 5,000 4,000 $ Total Liabilities $ 7,000 ASSETS Cash Accounts Receivable Supplies inventory Equipment $ 50,000 accumulate d depreciation $ (30,000) $ 20,000 $ 3,000 Prepaid insurance STOCKHOLDERS' EQUITY Common Stock Retained Earnings $ 18,000 $ 87,000 Total Stockholders' Equity $ 105,000 Total Assets $ 112,000 Total Liabilities +Stockholders' Equity $ 112,000 Run Forever Income Statement for the Quarter Ended March 31, 2021 Revenues Cost of Coaching Services (Coach Salaries) Gross Margin $ 70,000 $ 35,000 $ 35,000 Rent Expense Insurance Expense Depreciation Expense Supplies Expense $ (3,000) $ (1,000) $ 2,500) S (500) Total Expenses $ (7,000) Net Income $ 28,000 Run Forever Statement of Cash Flows for the Quarter Ended March 31, 2021 Cash from Operating Activities Net Income $ 28,000 Insurance Expense Depreciation Expense Supplies Expense Decrease in Accounts Receivable Increase in Accounts Payable Total cash from Operating Activities $ (1,000) $ (2,500) $ (500) $ 1,500 $ 2,000 $ 27,500 Cash from Investing Activities $ Cash from Financing Activities $ Net Increase in Cash $ 27,500 Run Forever Statement of Stockholder's Equity for the Quarter Ended March 31, 2021 Earnings Beginning Balance, January 1, 2021 Net Income Ending Balance, March 31, 2021 Common Additiona Stock, $1 I Paid In Retained par value Capital Total $ 3,000 $ 15,000 $59,000 $ 77,000 $ 28,000 $ 28,000 $ 3,000 $ 15,000 $ 87,000 $105,000