Question

Problem 9-2 t Lillian Shaw, a former Olympic diving champion, opened the Mid-Towne Health Club on July 1, XXX1. The business has these accounts in the accounting system: Cash Office Supplies Exercise Equipment Automobile Account Payable - Goldman Account Payable - Barbell Note Payable - Chase Lillian Shaw, Capital Membership Income Electric Power Expense Insurance Expense Interest Expense Maintenance Expense Rent Expense Salary Expense Telephone Expense Journalize the following transactions for Mid-Towne Health Club. July 1 Lillian Shaw deposited $50,000 in the Met­ro Bank to begin the business. July 2 She paid $1,200 in rent for July to the Alex Real Estate. July 3 Exercise equipment was purchased from the Barbell Company, Lillian paid $5,000 and charged $10,000 on account. July 4 Maintenance expense on the swimming pool of $200 was paid to the Sea Clear Company. July 5 The monthly premium of $900 on liability insurance was paid to the American Insur­ance Company, July 6 Salaries of attendants and instructors for the week of July 1 were paid. The payroll amounted to $2,500. July 6 Income from club membership received during the week of July 1 was totaled and deposited in the bank. The income amounted to $10,000. July 8 The telephone bill of $180 was paid in cash. July 9 Office supplies costing a total of $300 were purchased on credit from Goldman Company, July 10 The electric bill of $250 was paid in cash. July 11 The business borrowed $25,000 from Chase Bank, signing a note. July 12 The Barbell Company was paid $1,000 in cash to reduce the amount owed on account. July 13 Salaries of attendants and instructors for the week of July 8 were paid in cash. The pay­roll amounted to $2,500. July 14 Income from club membership received during the week of July 8 was totaled and deposited in the bank. The income amounted to $8,000. GENERAL JOURNAL DATE ACCOUNTS AND EXPLANATION REF. DEBIT CREDIT Jul. 1 Began business with deposit in Metro Bank of $50,000 2 Paid $1,200 July rent to Alex Real Estate 3 Purchased exercise equipment, paying cash of $5,000 and charged remainder of $10,000 to Barbell 4 Paid $200 for maintenance on swimming pool to Sea Clear 5 Paid liability insurance of $900 for July 6 Paid $2,500 salaries for week of July 1 6 Received $10,000 from membership income for week of July 1 8 Paid telephone of $180 expense 9 Purchased office supplies of $300 on credit from Goldman 10 Paid electric bill of $250 11 Borrowed $25,000 from Chase Bank, signing a note 12 Paid Barbell $1,000 on account 13 Paid salaries of $2,500 for week of July 8 14 Received $8,000 from membership income for week of July 8

Answer 1

Date	Accounts Title	Dr	Cr
1-Jul	Cash	$50,000
	Lillian Shaw, Capital		$50,000
2-Jul	Rent expenses	$1,200
	Cash		$1,200
3-Jul	Exercise Equipment	15000
	Account Payable - Barbell		10000
	Cash		$5,000
4-Jul	Maintenance Expense	$200
	Cash		$200
5-Jul	Insurance expense	$900
	Cash		$900
6-Jul	Salary expense	$2,500
	Cash		$2,500
6-Jul	Cash	10000
	Membership Income		$10,000
8-Jul	Telephone expenses	$180
	Cash		$180
9-Jul	Office supplies	$300
	Account Payable - Goldman		$300
10-Jul	Electric power expenses	$250
	Cash		$250
11-Jul	Cash	$25,000
	Notes payable		$25,000
12-Jul	Account Payable - Barbell	$1,000
	Cash		$1,000
13-Jul	Salary expense	$2,500
	Cash		$2,500
14-Jul	Cash	$8,000
	Membership Income		$8,000
	If any doubt please comment