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Question
Jims Gymnastics Trainings operations for the month of October are summarized as follows:
A. Provided $5,000 of training to students on account.
B. Received $4,000 cash from students for training provided in October.
C. Received $1,000 cash for training to be provided in November.
D. Received $3,000 cash from students on account for training provided in September.
E. Paid Septembers gym rental bill on account in the amount of $1,000.
F. Received Octobers rental bill of $1,500; set it aside.
Required:
Prepare journal entries to record the transactions identified among activities (A) through (F).
Answer:
| A | Accounts Receivable | 5,000 | |
| Service Revenue | 5,000 | ||
| B | Cash | 4,000 | |
| Service Revenue | 4,000 | ||
| C | Cash | 1,000 | |
| Unearned Revenue | 1,000 | ||
| D | Cash | 3,000 | |
| Accounts Receivable | 3,000 | ||
| E | Accounts Payable | 1,000 | |
| Cash | 1,000 | ||
| F | Rent Expense | 1,500 | |
| Accounts Payable | 1,500 |
Answer
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Part a. Prepare the closing entries dated December 31, 2016.
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