Question

In the general journal provided, prepare entries (in good form) for the following transactions. If no entry is required, write “NO ENTRY”.

October 1 - Bob Lee opened a martial arts school, called Lee Martial Arts, by depositing $40,000 cash into a business bank account and contributing exercise equipment worth $10,000.

October 4 - Hired an assistant, to be paid $400 per week, starting next week.

October 5 - Signed up 5 students, who will begin lessons on October 8, at $80 per week per student.

October 12 - First week’s lessons completed.  Received payment of the first week’s tuition from 4 students; the 5^th student will make payment in 3 days.

October 12 Paid assistant his first week’s wages.

October 15 - Received payment from 5^th student.

October 16 - Purchased exercise equipment for $6,000, paying cash of $4,000 with the balance due in two weeks.

October 20 The company receives the phone bill for $55 due in two weeks.

October 30 Paid the balance due for the exercise equipment purchased October 16^th.

October 31 Received $160 tuition in advance for two weeks of lessons starting next week.

		General Entry
Date	Description	Post	Debit	Credit

Answer 1

Here I have uploaded both image as well as text part.

Image -

Text Part -

	Journal
Date	Account Title and Explanations	Amount	Amount
		Debit	Credit
Oct'1	Bank	$ 40,000.00
	Exercise Equipment	$ 10,000.00
	To Capital		$50,000.00
	(Being business started with bank and equipment)
Oct'4	No Entry
Oct'5	No Entry
Oct'12	Bank	$       320.00
	Fees Receivable	$         80.00
	To Lessons Fees		$     400.00
	(Being fees received from 4 students and due to 1)
Oct'12	Assistant Salary	$       400.00
	To Bank		$     400.00
	(Being assistant fees paid)
Oct'15	Bank	$         80.00
	To Fees Receivable		$       80.00
	(Being fees received from 5th student)
Oct'16	Exercise Equipment	$    6,000.00
	To Cash		$ 4,000.00
	To Accounts Payable (Equipment)		$ 2,000.00
	(Being equipment purchased)
Oct'20	Telephone Expense	$         55.00
	To Telephone Bill Oustanding		$       55.00
	(Being bill received but not yet paid)
Oct'30	Accounts Payable (Equipment)	$    2,000.00
	To Bank		$ 2,000.00
	(Being amount paid to vendor)
Oct'31	Bank	$       160.00
	To Advance Fees Received		$     160.00
	(Being advance fees received)
Total		$       59,095.00	$     59,095.00