Question

Required information Problem 4-5A Record transactions, post to the Cash T-account, and prepare the statement of cash flows (LO4-7) The following information applies to the questions displayed below. Rocky owns and operates Balboa's Gym located in Philadelphia. The following transactions occur for the month of October 1. October 2 Receive membership dues for the month of October totaling $8,500. 2. October 5 Issue common stock in exchange for cash, $12,000. 3. October 9 Purchase additional boxing equipment for $9.600, paying one-hals of the amount in cash and isnuing a note payable to the seller for the other one-half doe by the end of the year. 4. October 12 Pay $1,500 for advertising regarding a special membership rate available during the month of October. 5. October 19 Pay dividends to stockholders, $4,400. 6. October 22 Pay liability insurance to cover accidents to members for the next six months, starting November 1, $6,900. 7. October 25 Receive cash in advance for November memberships, S5,600. 8. October 30 Receive, but do not pay, utilties bill for the month, $5,200. 9. October 31 Pay employees' salaries for the month, $7,300. Problem 4-5A Part 3 3. Assume the balance of cash at the beginning of October is $16.500. Post each cash transaction to the cash T- account Cash 16.600 October 1

Answer 1

T account

cash
Oct 1	16600	Oct 9	4800
Oct 2	8500	Oct 12	1500
Oct 5	12000	Oct 19	4400
Oct 25	5600	Oct 22	6900
Oct 31	7300
Oct 31 Bal	32400