As a friend and an accounting student, you have been asked by Lisa to aid her inassessing the venture.1. Indicate the effect of each transaction and the balances after each transaction, usingthe following tabular headings:= Liabilities +Owner's EquityAssetsLisaLisaSalariesAccountsDuncan,Duncan,FeesRentSuppliesMisc.Cash SuppliesEarned Expense Expense - Expense - ExpensePayableCapitalDrawing2. Prepare an income statement for September3. Prepare a statement of owner's equity for September4. Prepare a balance sheet as of September 305. a. Assume that Lisa Duncan could earn $10 per hour working 30 hours a week as awaitress. Evaluate which of the two alternatives, working as a waitress or operatingServe-N-Volley, would provide Lisa with the most income per monthDiscuss any other factors that you believe Lisa should consider beforeb.discussing a long-term arrangement with the Phoenix Tennis Club.

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Asked Dec 2, 2019
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Lisa Duncan, a junior in college, has been seeking ways to earn extra spending money. As an active sports enthusiast, Lisa plays tennis regularly at the Phoenix Tennis Club, where her family has a membership. The president of the club recently approached Lisa with the proposal that she manage the club’s tennis courts. Lisa’s primary duty would be to supervise the operation of the club’s 4 indoor and 10 outdoor courts, including court
reservations. In return for her services, the club would pay Lisa $325 per week, plus Lisa could keep whatever she earned from lessons. The club and Lisa agreed to a one-month trial, after which both would consider an arrangement for the remaining two years of Lisa’s college career. On this basis, Lisa organized Serve-N-Volley. During September 2019, Lisa managed the tennis courts and entered into the following transactions:
a. Opened a business account by depositing $950.
b. Paid $300 for tennis supplies (practice tennis balls, etc.).
c. Paid $275 for the rental of video equipment to be used in offering lessons during September.
d. Arranged for the rental of two ball machines during September for $250. Paid $100 in advance, with the remaining $150 due October 1.
e. Received $1,750 for lessons given during September.

f. Received $600 in fees from the use of the ball machines during September.
g. Paid $800 for salaries of part-time employees who answered the telephone and took reservations while Lisa was giving lessons.
h. Paid $290 for miscellaneous expenses.
i. Received $1,300 from the club for managing the tennis courts during September.
j. Determined that the cost of supplies on hand at the end of the month totaled $180; therefore, the cost of supplies used was $120.
k. Withdrew $400 for personal use on September 30.

As a friend and an accounting student, you have been asked by Lisa to aid her in
assessing the venture.
1. Indicate the effect of each transaction and the balances after each transaction, using
the following tabular headings:
= Liabilities +
Owner's Equity
Assets
Lisa
Lisa
Salaries
Accounts
Duncan,
Duncan,
Fees
Rent
Supplies
Misc.
Cash Supplies
Earned Expense Expense - Expense - Expense
Payable
Capital
Drawing
2. Prepare an income statement for September
3. Prepare a statement of owner's equity for September
4. Prepare a balance sheet as of September 30
5. a. Assume that Lisa Duncan could earn $10 per hour working 30 hours a week as a
waitress. Evaluate which of the two alternatives, working as a waitress or operating
Serve-N-Volley, would provide Lisa with the most income per month
Discuss any other factors that you believe Lisa should consider before
b.
discussing a long-term arrangement with the Phoenix Tennis Club.
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As a friend and an accounting student, you have been asked by Lisa to aid her in assessing the venture. 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: = Liabilities + Owner's Equity Assets Lisa Lisa Salaries Accounts Duncan, Duncan, Fees Rent Supplies Misc. Cash Supplies Earned Expense Expense - Expense - Expense Payable Capital Drawing 2. Prepare an income statement for September 3. Prepare a statement of owner's equity for September 4. Prepare a balance sheet as of September 30 5. a. Assume that Lisa Duncan could earn $10 per hour working 30 hours a week as a waitress. Evaluate which of the two alternatives, working as a waitress or operating Serve-N-Volley, would provide Lisa with the most income per month Discuss any other factors that you believe Lisa should consider before b. discussing a long-term arrangement with the Phoenix Tennis Club.

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Expert Answer

Step 1

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.

Step 2
  1. Following are the effect of each transaction:
Owner's Equity
Transac
Assets
Liabilities
tion
Ref.
L's
Fees
Earned Expenses Expense Expense Expense
Supplies Account
Supplies Misc
Cash
L's
Salaries
Rent
Payable
$950
$950
а.
-$300
-$275
-$275
с.
-$100
$1750
$600
d.
$150
$250
$1750
еe.
f.
$600
-$800
-$290
$800
g
$290
$1300
$1300
1
$120
-$120
k
$400
S400 $3,650
-$400
$2,435
$180
Total
$150
$950
$800
$525
$120
$290
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Owner's Equity Transac Assets Liabilities tion Ref. L's Fees Earned Expenses Expense Expense Expense Supplies Account Supplies Misc Cash L's Salaries Rent Payable $950 $950 а. -$300 -$275 -$275 с. -$100 $1750 $600 d. $150 $250 $1750 еe. f. $600 -$800 -$290 $800 g $290 $1300 $1300 1 $120 -$120 k $400 S400 $3,650 -$400 $2,435 $180 Total $150 $950 $800 $525 $120 $290

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Step 3

2.  Following are the income...

Income Statement
Particular
Amount S
Amount $
3650
Fee Earned
Less: Expenses
800
Salaries
Rent
525
Supplies
Misc. Expense
120
1735
1915
290
Net Income
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Income Statement Particular Amount S Amount $ 3650 Fee Earned Less: Expenses 800 Salaries Rent 525 Supplies Misc. Expense 120 1735 1915 290 Net Income

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