Question

city park yoga inc.

our Name Accounting 201 Assessment Qele Problems ent, she opened her new spacious studio in e and opened her studio for clay City Park Yoga, Inc. Wren Bleaches yoga and meditation Because she likes the quiet and contemplative outdoor environment, she opened her i ne City Park. She named her new business, City Park Yoga, Inc. and opened be beginning of September of 2020, w Instructions: Complete Parts 1 - 9 as listed in this packet Part 1 each individuale Record your journal entries in the general journal provided from the description ***SKIP A LINE BETWEEN EACH JOURNAL ENTRY RAREA in exchangloon Sol. Wren Bliss opened her business by investing 20,000 cash and $14,000 of equipment in stock Sort I. Wren paid $4,500 cash in advance to pay for three months' rent on the studio Sept. 1. Wren paid $3,000 cash in advance to pay for 12 months of insurance for her business. 2 City Park Community College paid Wren S10,000 in advance to teach yoga classes over the next 10 Wren is to begin teaching classes immediately. Sept. 3 Wren bought $2,500 of supplies on account. Sent 4. A City Park Community College professor hired Wren to provide meditation sessions with her accountine 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 cach and sent a bill to the NOLA Foundation Sept. 19. Wren paid $500 towards her account incurred previously for supplies purchased on September or supplies purchased on September 3rd. Sept. 21. The NOLA Foundation sent Wren a check for $1,000 in partial py classes for expectant mothers. en a check for $1,000 in partial payment of the bill sent previously for yoga 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

Data.......... Page.... Solution - PART I Tournal Entries. Date Entry Debit Sselt SEPT CASH ALC STOCK ALE EQUIPMENT AL. CAPITAL AL 20 000 14000 34000 AL 4500 PREPAID RENT CASH ALL 4500 3000 PREPAID INSURANCE ALC CASH AL 3000 10.000 CASH ALC ADVANCE FOR CUSTOMERS AC 10,000 2,500 SUPPLIES ALC ACCOUNTS PAYABLE AL 2500 AIC 1000 CASH SALES AIC 1000 2500 NOLA FOUNDATION AL SALES ALC ( $125 X 20 2500 500 ACCOUNTS PAYABLES ALC CASH AC 500 Drehies

Date........... Page... DATE ENTRY DEBIT CREDIT SEPT. 21 1000 BANK ALL NOLA FOUNDATION AC 1000 300 Utility EXPENSES AC CASH - AC 300 5000 CASH ALC DIVIDEND RECEIVED ALL Sooo.

Date......................... Page............... PART-4 (ADJUSTING ENTRIES) DATE ACCOUNT DEBIT CREDIT *250 DEPRECIATION AL Istatement of Profit or Loss EQUIPMENT AL [statement Of finendal - Position ] 250 RENT EXPENSE PREPAID RENT C AIC 1500 * 250 INSURANCE EXPENSE ALC PREPAID INSURANCE AC 250 * 4000 ADVANCE from CUSTOMERS AC SALES ALC *4000 5. ALC * 1300 SUPPLIES EXPENSE SUPPLIES ALC 1300 2000 Lake VIEW WELLNESS CENTER AK SALES AL 2000 400 SALARY ALL SALARY OUTSTANDING AC yoo archies

Date..................... Page.... WORKING NOTES : (for Adjusting Entries) Depreciation for 1 month : COST 14000 - 4 C LIFE) SALVAGE VALUE 2000 3000 $ / Annum. Now, for 1 month, 3000 & 12 250 $ 2 Rent Expired for 1 MONTH- : 4500 1500 $ 3. Insurance Exprred for 1 month - 3000 250 $ arebies

Date........... Page.... 4. Advance adjusted : TOTAL ADVANCE RECEIVED TOTAL ADVANCE PERIOD SERVICES GIVEN FOR E - - 10000 $ 10 weeks. 4 weers, Hence, Wren will consider revenue for 4 weeks only That is ; 10,000 x 4 = 4000 $ 5. TOTAL SUPPLIES BOUGHT - SUPPLIES ON HAND :. Supplies EXPENSED (UTLUSED = IN - SEPT. ) 2500 $ 1200 $ 1300 $