Question

Required Information Problem 4-5A Record transactions, post to the Cash T-account, and prepare the statement of cash flows (L04-7) {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 $8,5e. 2. October 5 Issue common stock in exchange for cash, $12, eee. 3. October 9 Purchase additional boxing equipment for $9,6ee, paying one-half of the amount in cash and issuing a 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, $4,4ee. 6. October 22 Pay liability insurance to cover accidents to members for the next six months, starting November 1, $6,988. 7. October 25 Receive cash in advance for November memberships, $5,600. 8. October 30 Receive, but do not pay, utilities bill for the month, $5,200. 9. October 31 Pay employees' salaries for the month, $7,300. Problem 4-5A Part 2 2. Identify the transactions involving cash. (Select all that apply.)

Answer 1

	The following transactions are cash transactions:
Select	Oct 2-Cash Debited by $8,500
Select	Oct 5-Cash Debited by $12,000
Select	Oct 9-Cash credited by $4,800
Select	Oct 12-Cash credited by $1,500
Select	Oct 19-Cash credited by $4,400
Select	Oct 22-Cash credited by $6,900
Select	Oct 25-Cash Debited by $5,600
DON't Select	Oct 30-No involvement of cash
Select	Oct 31-Cash credited by $7,300
	Cash
	Opening Balance	$    16,600.00	Oct-09	$       4,800.00
	Oct-02	$      8,500.00	Oct-12	$       1,500.00
	Oct-05	$    12,000.00	Oct-19	$       4,400.00
	Oct-25	$      5,600.00	Oct-22	$       6,900.00
			Oct-31	$       7,300.00
			Closing Balance	$     17,800.00
		$    42,700.00		$     42,700.00