James White owns All Natural Fitness Centre, a local gym that caters to people who wantnatural bodyweight equipment. At the end of May 31, the following are the transactions:May1Purchased new equipment, paying cash of $14,200 and signing a 90-day notepayable for the balance of $34,000.2 Purchased 12 months of insurance to begin May 2; paid $25,200.3 Completed a fitness contract for a group of clients today and received $6,200.4 Purchased office supplies on account; $3,850.6 Returned to the supplier $770 of defective office supplies purchased on May 4.10 Provided services to a client today on account; $11,700.15 Paid for the May 4 purchase less the return of May 6.20 Received payment from the client of May 10.25 Received cash of $2,700 from a client for work to be done in June.31 Paid month-end salaries of $49,000.31 Paid the May telephone bill today; $2,350.31 Received the May electrical bill today; $3,300. It will be paid on June 15.Instructions: Prepare the journal entries, below, based on the above transactions byselecting the correct dates and account names from the multiple choice selections as well asentering the correct values for the accounts. Please format the values exactly as they are

Debit Equipment $48,200 (Purchase of new equipment)Credit Cash $14,200 (Cash paid)Credit Notes…

Answered: James White owns All Natural Fitness…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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