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 Baboe'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-hal of the amount in cash and isnuing note payable to the seller for the other one-half due 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 Hability Insurance to cover accidente 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. util.tien bill for the month, $5,200. 9. October 31 Pay employees' salaries for the month $7,300. Problem 4-5A Part 1 Required: 1. Record each transaction. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record receipt of membership dues for the month of October totaling $8,500. Note: Enter debits before credits Date General Journal October Debit Credit Record entry Clear entry View general journal

Answer 1

Date	General Journal	Debit	Credit
October 2	Cash	$8,500
	Membership revenue		$8,500
	( To record membership revenue)
October 5	Cash	$12,000
	Common stock		$12,000
	( To record of issuance of common stock)
October 9	Equipment	$9,600
	Cash		$4,800
	Note payable		$4,800
	( To record purchase of equipment and issuance of note)
October 12	Advertisement expense	$1,500
	Cash		$1,500
	( To record advertisement expense)
October 19	Dividends	$4,400
	Cash		$4,400
	( To record dividend )
October 22	Prepaid insurance	$6,900
	Cash		$6,900
	( To record prepaid insurance)
October 25	Cash	$5,600
	Unearned membership revenue		$5,600
	( To record unearned membership revenue)
October 30	Utilities expense	$5,200
	Utilities payable		$5,200
	( To record utilities expense)
October 31	Salaries expense	$7,300
	Cash		$7,300
	( To record salary expense)

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