College Accounting: Module Mastery Problem - John McRoe opened a tennis resort in June 20

College Accounting
Module - Accounting for a Professional Service Business: The Combination Journal
Module - Mastery Problem
John McRoe opened a tennis resort in June 20--. Most guests register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. Guests stay at an adjacent hotel. The tennis resort provides lunch and dinner. Dining and exercise facilities are provided in a building rented by McRoe. A dietitian, masseuse, physical therapist, and athletic trainers are on call to assure the proper combination of diet and exercise. The chart of accounts and transactions for the month are provided below. McRoe uses the modified cash basis of accounting.
McRoe Tennis Resort
Chart of Accounts
Assets Revenue
101 Cash 401 Registration Fees
142 Office Supplies
144 Food Supplies Expenses
184 Tennis Facilities 511 Wages Expense
184.1 Accum Depr - Tennis Facilities 521 Rent Expense
186 Exercise Equipment 523 Office Supplies Expense
186.1 Accum Depr - Exercise Equipment 524 Food Supplies Expense
525 Telephone Expense
Liabilities 533 Utilities Expense
202 Accounts Payable 535 Insurance Expense
536 Postage Expense
Owner's Equity 541 Depr Exp - Tennis Facilities
311 John McRoe, Capital 542 Depr Exp - Exercise Equipment
312 John McRoe, Drawing
313 Income Summary

1-Jun McRoe invested cash in the business, $90,000.
1-Jun Paid for new exercise equipment, $9,000.
2-Jun Deposited registration fees in the bank, $15,000.
2-Jun Paid rent for month of June on building and land, $2,500.
2-Jun Rogers Construction completed work on new tennis courts that cost $70,000. The estimated useful life of the facility is five years, at which time the courts will have to be resurfaced. Arragement were made to pay the bill in July.
3-Jun Purchased food supplies on account from Au Natured Foods, $5,000.
5-Jun Purchased office supplies on account from Gordon Office Supplies, $300.
7-Jun Deposited registration fees in the bank, $16,200.
10-Jun Purchased food supplies on account from Au Natured Foods, $6,200.
10-Jun Paid wages to staff, $500.
14-Jun Deposited registration fees in the bank, $13,500.
16-Jun Purchased food supplies on account from Au Natured Foods, $4,000.
17-Jun Paid wages to staff, $500.
18-Jun Paid postage, $85.
21-Jun Deposited registration fees in the bank, $15,200.
24-Jun Purchased food supplies on account from Au Natured Foods, $5,500.
24-Jun Paid wages to staff, $500.
28-Jun Deposited registration fees in the bank, $14,000.
30-Jun Purchased food supplies on account from Au Natured Foods, $6,000.
30-Jun Paid wages to staff, $500.
30-Jun Paid Au Natured Foods on account, $28,700.
30-Jun Paid Utility bill, $500.
30-Jun Paid telephone bill, $120.
30-Jun McRoe withdrew cash for personal use, $1,500.

Required:
1. Enter the transaction in a combination journal (page 1). Establish special columns for Registration Fees (credit), Wages Expense (debit), and Food Supplies (debit).
2. Prove the combination journal.
3. Post these transactions to a general ledger.
4. Prepare a trial balance as of June 30.
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