close solutoin list

A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about 7,000 people and 4 million tourists annually. She has named the business All About You Spa to convey the idea that the business intends to pamper those who enter its doors. She will operate the spa five days a week, Tuesday through Saturday, but a phone line will always be available to answer questions and schedule appointments. Hours will be from 8 A.M. to 8 P.M. She has asked you to be the bookkeeper for this new business. At the end of the month of June, the owner, Anika Valli, would like you to provide the following: 1. General journal 2. General ledger 3. Trial balance 4. Income statement (This is the profit and loss statement in QuickBooks.) 5. Statement of owner’s equity (Ignore this step if you are using QuickBooks.) 6. Balance sheet She has kept a checkbook and a file folder with summary evidence of June’s spa activity: a check register, a summary report of charges by customers for services provided, all receipts that were issued, and a summary of charges made by All About You Spa. Most of the income from services is received in cash and as charges to credit cards. No checks are accepted, except from approved clients (primarily conference planners and other organizations that book packages as prizes for attendees or gifts for employees, speakers, or other people they want to thank with a spa service or package of services). Anika deposits cash receipts on customer’s accounts on the 7th, 14th, 21st, and last day of each month. The first page in the file folder contains the following chart of accounts. Currently, you will not use or may not be familiar with some of the accounts listed here. Ignore those accounts for now; we will use them later. CHART OF ACCOUNTS FOR ALL ABOUT YOU SPA The basis of your entries will be the following documents: Other information that require journal entries: If you are using QuickBooks you will need to select a vendor when recording Accounts Payable transactions. If you are using QuickBooks, you will need to select a customer when recording Accounts Receivable transactions. Required 1. Journalize the transactions for June (in date order) in the general journal. If you are using QuickBooks or general ledger, review the instructions for the program on the textbook website. If you are preparing the journal entries manually, enter your transactions beginning on page 1. 2. Post the entries to the general ledger accounts. Ignore this step if you are using QuickBooks or general ledger. 3. Prepare a trial balance as of June 30, 20--. 4. Prepare an income statement for the month ended June 30, 20--. 5. Prepare a statement of owner’s equity for the month ended June 30, 20--. Skip this step if you are using QuickBooks. 6. Prepare a balance sheet as of June 30, 20--.

BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter
Section
Chapter 3, Problem 1CP
Textbook Problem

A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about 7,000 people and 4 million tourists annually. She has named the business All About You Spa to convey the idea that the business intends to pamper those who enter its doors. She will operate the spa five days a week, Tuesday through Saturday, but a phone line will always be available to answer questions and schedule appointments. Hours will be from 8 A.M. to 8 P.M. She has asked you to be the bookkeeper for this new business. At the end of the month of June, the owner, Anika Valli, would like you to provide the following:

  1. 1. General journal
  2. 2. General ledger
  3. 3. Trial balance
  4. 4. Income statement (This is the profit and loss statement in QuickBooks.)
  5. 5. Statement of owner’s equity (Ignore this step if you are using QuickBooks.)
  6. 6. Balance sheet

She has kept a checkbook and a file folder with summary evidence of June’s spa activity: a check register, a summary report of charges by customers for services provided, all receipts that were issued, and a summary of charges made by All About You Spa. Most of the income from services is received in cash and as charges to credit cards. No checks are accepted, except from approved clients (primarily conference planners and other organizations that book packages as prizes for attendees or gifts for employees, speakers, or other people they want to thank with a spa service or package of services). Anika deposits cash receipts on customer’s accounts on the 7th, 14th, 21st, and last day of each month.

The first page in the file folder contains the following chart of accounts. Currently, you will not use or may not be familiar with some of the accounts listed here. Ignore those accounts for now; we will use them later.

CHART OF ACCOUNTS FOR ALL ABOUT YOU SPA

Chapter 3, Problem 1CP, A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about , example  1

The basis of your entries will be the following documents:

Chapter 3, Problem 1CP, A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about , example  2

Other information that require journal entries:

Chapter 3, Problem 1CP, A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about , example  3

Chapter 3, Problem 1CP, A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about , example  4

If you are using QuickBooks you will need to select a vendor when recording Accounts Payable transactions.

Chapter 3, Problem 1CP, A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about , example  5

If you are using QuickBooks, you will need to select a customer when recording Accounts Receivable transactions.

Required

  1. 1. Journalize the transactions for June (in date order) in the general journal.
    • If you are using QuickBooks or general ledger, review the instructions for the program on the textbook website. If you are preparing the journal entries manually, enter your transactions beginning on page 1.
  2. 2. Post the entries to the general ledger accounts.
    • Ignore this step if you are using QuickBooks or general ledger.
  3. 3. Prepare a trial balance as of June 30, 20--.
  4. 4. Prepare an income statement for the month ended June 30, 20--.
  5. 5. Prepare a statement of owner’s equity for the month ended June 30, 20--. Skip this step if you are using QuickBooks.
  6. 6. Prepare a balance sheet as of June 30, 20--.

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 3 Solutions

College Accounting (Book Only): A Career Approach
Show all chapter solutions

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What is bribery?

Accounting Information Systems

CALCULATING THE WACC Here is the condensed 2014 balance sheet for Skye Computer Company (in thousands of dollar...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is inflation and what causes it?

Principles of Microeconomics (MindTap Course List)