Question

Accounting 201 Assessment Cycle Problem Your Name: City Park Yoga, Inc. Wren Bliss teaches yoga and meditation. Because she likes the quiet and contemplative outdoor environment, she opened her new spacious studio in a buildine overlooking City Park. She named her new business, City Park Yoga, Inc. and opened her studio for classes in the beginning of September of 2020. Instructions: Complete Parts 1-9 as listed in this packet Part 1 Record your journal entries in the general journal provided from the descriptions of each individual event. ****** SKIP A LINE BETWEEN EACH JOURNAL ENTRY*** Wren Bliss opened her business by investing 20,000 cash and $14,000 of equipment in exchange for common stock. Sept 1. Sept. 1. Wren paid $4,500 cash in advance to pay for three months' rent on the studio. Wren paid $3,000 cash in advance to pay for 12 months of insurance for her business. Sept. 1. City Park Community College paid Wren $10,000 in advance to teach yoga classes over the next 10 weeks. Wren is to begin teaching classes immediately. Sept. 2. Sept. 3 Wren bought $2,500 of supplies on account. Sept. 4. A City Park Community College professor hired Wren to provide meditation sessions with her accounting students so all the students could all make an "A" on their Accounting Cycle Problems. Wren completed the classes and was paid $1,000 in cash. Sept. 5. The NOLA Foundation hired Wren to teach yoga classes for expectant mothers. The agreement between Wren and the NOLA Foundation stated that Wren would bill for her services after the classes we completed. Sept. 17. Wren completed teaching 20 classes for the NOLA Foundation for expectant mothers for $125.00 each and sent a bill to the NOLA Foundation Sept. 19. Wren paid $500 towards her account incurred previously for supplies purchased on September 3rd. Sept. 21. The NOLA Foundation sent Wren a check for $1,000 in partial payment of the bill sent previously for yoga classes for expectant mothers. Sept. 27. Wren paid $300 in cash for the studio's monthly utility bill. Sept. 30. The corporation paid Wren a $5,000 dividend.

Answer 1

The journal entries for the first four subparts of Part 1 are as under:

Cash/Bank (Debit)                                           $20,000

Equipment (Debit)                                          $14,000

                To Common Stock/Equity (Credit)            $34,000

(For opening the business and bringing in cash and equipment for common stock)

Prepaid rent (Debit)                       $4,500

                To Cash/Bank (Credit)                    $4,500

(For rent paid in advance)

At the end of the month, one month would be expensed

Rent expense (Debit)                    $1,500

                To Prepaid rent (Credit)                                $1500

Prepaid insurance (Debit)            $3,000

                To Cash/Bank (Credit)                    $3,000

(For insurance paid in advance)

At the end of the month, one month would be expensed

Insurance expense (Debit)                          $250

                To Prepaid insurance (Credit)                     $250

Cash/Bank (Debit)                                           $10,000

                To Unearned revenue (Credit)                  $10,000

For receiving cash in advance

At the end of the month once the service is provided four weeks would be accounted as revenue

Unearned revenue (Debit) $4,000

                To Revenue (Credit)       $4,000

Please note for each additional (sub part) question you need to create separate questions.