• Other financial information as of October 31, 2023:Cash in checking account, $7,000.Petty cash, $300.Outstanding mortgage balance, $352,000.Accounts payable arising from invoices for supplies and utilities that are unpaid as ofOctober 31, 2023, and due in November 2023, $4,500.• No other unpaid bills existed on October 31, 2023.• The club purchased $25,000 worth of exercise equipment during the current fiscal year. Cashof $10,000 was paid on delivery, with the balance due on October 1. This amount had not beenpaid as of October 31, 2023. An additional $25,00 (cash) of equipment purchases is plannedfor the coming year.• The club began operations in 2022 in rental quarters. In October 2022, it purchased its currentproperty (land and building) for $600,000, paying $120,000 down and agreeing to pay$32,000 plus 9% interest annually on the unpaid loan balance each November 1, startingNovember 1, 2023.• Membership rose 3% in 2023. The club has experienced approximately this same annualgrowth rate since it opened and this rate is expected to continue in the future.• Membership fees increased by 15% in 2023. The board has tentative plans to increase thesefees by 10% in 2024.• Lesson and class fees have not been increased for 3 years. The board policy is to encourageclasses and lessons by keeping the fees low. The members have taken advantage of thispolicy, and the number of classes and lessons has increased significantly each year. The clubexpects the percentage growth experienced in 2023 to be repeated in 2024.• Miscellaneous revenues are expected to grow at the same rate as in 2023.• Operating expenses expected to increase:• Hourly wage rates and the manager's salary: 15%.• Towels and supplies, utilities, and miscellaneous expenses: 25%.Required:1. Prepare a cash budget for 2024 for the Triple-F Health Club. (Round your "Growth %" column answers to 2decimal places and your remaining answers to nearest whole dollar or percentage amount.) Triple-F Health Club (Family, Fitness, and Fun) is a not-for-profit, family-oriented health club. Theclub's board of directors is developing plans to acquire more equipment and expand clubfacilities. The board plans to purchase about $25,000 of new equipment each year and wants toestablish a fund to purchase the adjoining property in four or five years. The adjoining propertyhas a market value of about $300,000.The club manager, Jane Crowe, is concerned that the board has unrealistic goals in light of theclub's recent financial performance. She has sought the help of a club member with anaccounting background to assist her in preparing a report to the board supporting her concerns.The member reviewed the club's records, including this cash-basis income statement:TRIPLE-F HEALTH CLUBIncome Statement (Cash Basis)For Years Ended October 3120232022Cash revenues:$ 379,000239,2002,800$ 300,000184,0001,500$ 485,500Annual membership feesLesson and class feesMiscellaneousTotal cash revenues$ 621,000Cash expenses:Manager's salary and benefitsRegular employees' wages and benefitsLesson and class employees' wages and benefitsTowels and suppliesUtilities (heat and light)Mortgage interest$ 36,000190,000$ 40,000194,000199,00020,00026,00035,2004,000$ 483,000$ 138,000150,00015,50015,00037,8001,500Miscellaneous$ 445,800$ 39,700Total cash expendituresIncrease in cash

The answer has been mentioned below.

began operations in 2022 in rental quarters. In October 202 (land and building) for $600,0o0, paying $120,000 down an plus 9% interest annually on the unpaid loan balance each N er 1, 2023. ship rose 3% in 2023. The club has experienced approximate ate since it opened and this rate is expected to continue in th ship fees increased by 15% in 2023. The board has tentative 10% in 2024. and class fees have not been increased for 3 years. The boar and lessons by keeping the fees low. The members have take nd the number of classes and lessons has increased significa the percentage growth experienced in 2023 to be repeated heous revenues are expected to grow at the same rate as in g expenses expected to increase:

began operations in 2022 in rental quarters. In October 202 (land and building) for $600,0o0, paying $120,000 down an plus 9% interest annually on the unpaid loan balance each N er 1, 2023. ship rose 3% in 2023. The club has experienced approximate ate since it opened and this rate is expected to continue in th ship fees increased by 15% in 2023. The board has tentative 10% in 2024. and class fees have not been increased for 3 years. The boar and lessons by keeping the fees low. The members have take nd the number of classes and lessons has increased significa the percentage growth experienced in 2023 to be repeated heous revenues are expected to grow at the same rate as in g expenses expected to increase:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received...

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Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.
Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $7,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $250 check #102. D. Received $350 cash for services rendered. E. Purchased office supplies for $125 with check #103. F. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days. G. Received $750 cash for services rendered. H. Paid wages $375, check #105. I. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106. J. Increased Petty Cash by $70, check #107.
Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. A. The owners invested $12,000 from their personal account to the business account.B. Paid rent $700 with check #101.C. Initiated a petty cash fund $500 with check #102.D. Received $1,000 cash for services rendered.E. Purchased office supplies for $158 with check #103.F. Purchased computer equipment $2,100, paid $1,350 with check #104, and will pay the remainder in 30 days.G. Received $800 cash for services rendered.H. Paid wages $800, check #105.I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $75, miscellaneous expense $55. Cash on hand $18. Check #106.J. Increased petty cash by $30, check #107. Prepare the journal entries. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 B. fill in the blank 8 fill in the blank 9…
Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. A. The owners invested $8,500 from their personal account to the business account.B. Paid rent $850 with check #101.C. Initiated a petty cash fund $550 with check #102.D. Received $800 cash for services rendered.E. Purchased office supplies for $180 with check #103.F. Purchased computer equipment $9,500, paid $1,600 with check #104, and will pay the remainder in 30 days.G. Received $1,200 cash for services rendered.H. Paid wages $560, check #105.I. Petty cash reimbursement: office supplies $200, Maintenance Expense $160, Miscellaneous Expense $65. Cash on Hand $65. Check #106.J. Increased Petty Cash by $100, check #107. Inner Resources Company received the following bank statement. Bank Statement Beginning balance $0 Deposits Checks A. $8,500 101 $850 G. 1,200 102 550 103 180 106 485 Bank service charges 100…
Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $850 with check #101. C. Initiated a petty cash fund $550 with check #102. D. Received $800 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $9,500, paid $1,600 with check #104, and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement: office supplies $250, Maintenance Expense $160, Miscellaneous Expense $65. Cash on Hand $17. Check #106. J. Increased Petty Cash by $100, check #107. Inner Resources Company received the following bank statement. Bank Statement Beginning balance $0 Deposits Checks A. $8,500 101 $850 G. 1,200 102 550 103 180 106 533 Bank service charges 110 Total $9,700 $2,223 Ending balance $7,477…
Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. A. The owners invested $10,000 from their personal account to the business account.B. Paid rent $700 with check #101.C. Initiated a petty cash fund $500 with check #102.D. Received $1,100 cash for services rendered.E. Purchased office supplies for $158 with check #103.F. Purchased computer equipment $2,500, paid $1,250 with check #104, and will pay the remainder in 30 days.G. Received $800 cash for services rendered.H. Paid wages $600, check #105.I. Petty cash reimbursement: office supplies $256, maintenance expense $110, postage expense $79, miscellaneous expense $57. Cash on hand $10. Check #106.J. Increased petty cash by $30, check #107. Domingo Company received the following bank statement. Bank Statement Beginning balance $0 Deposits Checks A. $10,000 101 $700 D. 1,100 102 500 103 158 106 490 Bank service…
Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. A. The owners invested $12,000 from their personal account to the business account.B. Paid rent $600 with check #101.C. Initiated a petty cash fund $600 with check #102.D. Received $1,100 cash for services rendered.E. Purchased office supplies for $158 with check #103.F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days.G. Received $800 cash for services rendered.H. Paid wages $600, check #105.I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $73, miscellaneous expense $55. Cash on hand $116. Check #106.J. Increased petty cash by $30, check #107. Prepare the journal entries. If an amount box does not require an entry, leave it blank. A. Domingo, Capital Domingo, Capital Cash Cash B. Rent Expense Rent Expense Cash Cash C. Petty Cash…
The accounting records of Tama Co. show the following assets and liabilities as of December 31, 2018 and 2019. December 31 2018 2019 Cash . . . . . . . . . . . . . . . . . . . . . . . . $30,000 $ 5,000 Accounts receivable . . . . . . . . . . . 35,000 25,000 Office supplies . . . . . . . . . . . . . . . . 8,000 13,500 Office equipment . . . . . . . . . . . . . . 40,000 40,000 Machinery . . . . . . . . . . . . . . . . . . . 28,000 28,500 December 31 2018 2019 Building . . . . . . . . . . . . . . . . . . $ 0 $250,000 Land . . . . . . . . . . . . . . . . . . . . . 0 50,000 Accounts payable . . . . . . . . . . 4,000 12,000 Note payable . . . . . . . . . . . . . . 0 250,000 Required 1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equity on the balance sheet and remember that total equity equals the difference between assets and liabilities. 2. Compute net income for 2019 by comparing total equity amounts for these two years and using the…
Domingo Company started its business on May 1, 2019. The following transactions occurred during the month of May and the following entries were recorded. A. The owners invested $5,000 from their personal account to the business account.B. Paid rent $700 with check #101.C. Initiated a petty cash fund $500 with check #102.D. Received $1,300 cash for services rendered.E. Purchased office supplies for $158 with check #103.F. Purchased computer equipment $2,000, paid $1,350 with check #104, and will pay the remainder in 30 days.G. Received $800 cash for services rendered.H. Paid wages $700, check #105.I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $71, miscellaneous expense $55. Cash on hand $18. Check #106.J. Increased petty cash by $30, check #107. A. Cash 5,000 Domingo, Capital 5,000 B. Rent Expense 700 Cash 700 C. Petty Cash 500 Cash 500 D. Cash 1,300 Services Income 1,300 E. Office…
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