Chapter 3, Problem 1CP

This problem continues the accounting process for Fitness Equipment Doctor, Inc., from the Continuing Problem in Chapter 2. The trial balance for Fitness Equipment Doctor, Inc., at April 30, 2018, should look like this:

Fitness Equipment Doctor, Inc. Trial Balance April 30, 2018
	ACCOUNT	DEBIT	CREDIT
	Cash	$23,485
	Accounts Receivable	5,600
	Supplies	1,350
	Land	16,000
	Furniture	2,100
	Equipment	3,600
	Vehicles	35,800
	Accounts Payable		$ 2,850
	Notes Payable		35,800
	Common Stock		45,000
	Dividends	3,800
	Service Revenue		13,300
	Salaries Expense	2,645
	Rent Expense	1,500
	Advertising Expense	500
	Utilities Expense	495
	Miscellaneous Expense	75
	Total	$96,950	$96,950

May 1	Paid four months’ rent, $6,400.
4	Performed service for a customer and received cash, $2,500
9	Received $3,600 from customers for services to be performed later.
12	Purchased $650 of supplies on account.
15	Billed customers for services performed, $3,400.
16	Paid receptionist’s salary, $675.
22	Received $3,800 on account.
25	Paid $2,500 on account.
28	Received $1,600 cash for services performed.
30	Paid $2,000 of dividends.

Requirements

1. 1. Journalize the transactions that occurred in May. No explanations are necessary.
2. 2. Using the four-column accounts from the continuing problem in Chapter 2, post the transactions to the ledger, creating new ledger accounts as necessary Omit posting references. Calculate the new account balances at May 31.
3. 3. Prepare the unadjusted trial balance for Fitness Equipment Doctor, Inc., at May 31.
4. 4. Journalize and post the adjusting entries for May based on the following adjustment information.
   1. a. Record the expired rent.
   2. b. Supplies on hand, $450.
   3. c. Depreciation: equipment. $450; furniture, $115; vehicles $1,200.
   4. d. Services performed but unbilled, $2,800.
   5. e. Accrued salaries, $675.
   6. f. Unearned service revenue earned as of May 31, $700.
5. 5. Prepare an adjusted trial balance for Fitness Equipment Doctor, Inc., at the end of May.
6. 6. Prepare the income statement and statement of retained earnings for the three-month period March 1 through May 31, 2018. Also prepare a balance sheet at May 31, 2018.
7. 7. Prepare and post closing entries.
8. 8. Prepare a post-closing trial balance at May 31, 2018.