Required information[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 ofOctober2 Receive membership dues for the month of October totaling $8,5005 Issue common stock in exchange for cash, $12,0009 Purchase additional boxing equipment for $9,600, paying one--half of the amount in cash andissuing1. October2. October3. Octobernd of the year.due by thespecial membership rate available during the month ofer one-halfa note payable to the seller for the ot4. October 12 Pay $1, 500 for advertising regardingаOctober5. October 19 Pay dividends to stockholders, $4,4006. October 22 Pay liability insurance to cover accidents to members for the next six months, startingNovember 1, $6,900.7. October 25 Receive cash in advance for November memberships, $5,6008. October 30 Receive, but do not pay, utilities bill for the month, $5,200.9. October 31 Pay employees' salaries for the month, $7,300.3. Assume the balance of cash at the beginning of October is $16,600. Post each cash transaction to the cash T-account.CashOctober 116,60016,600End. Bal

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Asked Sep 26, 2019

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Required information
[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
2 Receive membership dues for the month of October totaling $8,500
5 Issue common stock in exchange for cash, $12,000
9 Purchase additional boxing equipment for $9,600, paying one--half of the amount in cash and
issuing
1. October
2. October
3. October
nd of the year.
due by the
special membership rate available during the month of
er one-half
a note payable to the seller for the ot
4. October 12 Pay $1, 500 for advertising regarding
а
October
5. October 19 Pay dividends to stockholders, $4,400
6. October 22 Pay liability insurance to cover accidents to members for the next six months, starting
November 1, $6,900.
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.
3. Assume the balance of cash at the beginning of October is $16,600. Post each cash transaction to the cash T-account.
Cash
October 1
16,600
16,600
End. Bal
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Required information [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 2 Receive membership dues for the month of October totaling $8,500 5 Issue common stock in exchange for cash, $12,000 9 Purchase additional boxing equipment for $9,600, paying one--half of the amount in cash and issuing 1. October 2. October 3. October nd of the year. due by the special membership rate available during the month of er one-half a note payable to the seller for the ot 4. October 12 Pay $1, 500 for advertising regarding а October 5. October 19 Pay dividends to stockholders, $4,400 6. October 22 Pay liability insurance to cover accidents to members for the next six months, starting November 1, $6,900. 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. 3. Assume the balance of cash at the beginning of October is $16,600. Post each cash transaction to the cash T-account. Cash October 1 16,600 16,600 End. Bal

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Expert Answer

Step 1

T-account:

 

T-account is a fundamental tool in double entry accounting, which shows the effect of a transaction on two sides, that is, dual effect. Since this account is a “T” shaped account, this is known as T-account. The left side of the T-account is referred to as the debit side, and right side of the T-account is referred to as the credit side.

Step 2

3.

 

Post each cash transaction to the cash T-account.

Cash
16,600 October 9
9,500 October 12
12,000 October 19
5,600 October 22
October 31
Ending balance
43.700
October 1
October 2
October 5
October 25
4,800
1,500
4,400
6,900
7,300
18,800|
43.700
Ending balance
18,800
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Cash 16,600 October 9 9,500 October 12 12,000 October 19 5,600 October 22 October 31 Ending balance 43.700 October 1 October 2 October 5 October 25 4,800 1,500 4,400 6,900 7,300 18,800| 43.700 Ending balance 18,800

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Step 3

Note:

 

  • On October 9, only half of the amount is paid in cash for the additional boxing equipment, which was purchased for $9,600. Hence, half of the amount of $9,600, that is $4,800, is posted to the cash T-account.

 

  • On O...

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