In April Pete Rey opened a new Fitness Center. Please assist him by journalizing
ID: 2351176 • Letter: I
Question
In April Pete Rey opened a new Fitness Center. Please assist him by journalizing the following business transactions:Apr. 1 Pete Rey invested $6, 000 of fitness equipment as well as $3,000 cash in the new business.
3 Purchased fitness supplies on account from Rex Co., $500.
10 Purchased office equipment on account from Ross Stationery, $400.
12 Pete paid his home telephone bill from the company checkbook, $60.
20 Received $600 cash for fitness services performed.
21 Advertising bill received but not paid, $74.
25 Cleaning bill received but not paid, $90.
28 Performed fitness work for $700, but payment will not be received until May.
29 Paid salaries expense, $400.
30 Paid Rose Stationery half the amount owed from April 10 transactions.
Explanation / Answer
Apr. 1 Pete Rey invested $6, 000 of fitness equipment as well as $3,000 cash in the new business. Cash (Dr.) 3000 Equipment (Dr.) 6000 Pete Ray, Capital (Cr.) 9000 3 Purchased fitness supplies on account from Rex Co., $500. Supplies (Dr.) 500 Accounts payable (Cr.) 500 10 Purchased office equipment on account from Ross Stationery, $400. Equipment (Dr.) 400 Accounts payable (Cr.) 400 12 Pete paid his home telephone bill from the company checkbook, $60. Pete Rey, Drawing (Dr.) Cash (Cr.) 60 20 Received $600 cash for fitness services performed. Cash (Dr.) 600 Fees earned (Cr.) 600 21 Advertising bill received but not paid, $74. Advertising expense (Dr.) 74 Accounts payable (Cr.) 74 25 Cleaning bill received but not paid, $90. Miscellaneous expense (or Cleaning expense) (Dr.) 90 Accounts payable (Cr.) 90 28 Performed fitness work for $700, but payment will not be received until May. Accounts receivable (Dr.) 700 Fees earned (Cr.) 700 29 Paid salaries expense, $400. Salaries expense (Dr.) 400 Cash (Cr.) 400 30 Paid Rose Stationery half the amount owed from April 10 transactions. Accounts payable (Dr.) 200 Cash (Cr.) 200