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29CF2BD9-0BCF-4481-841C-38373221E16D.jpegGeneral journal,

adjustments, closing entries, general ledger, ledger account and worksheet


St. Francis College
Department of Accounting and Business Law
Page 1
(To be completed after Chapter 4)
The Heights Fitness Club opened for business on January 1, 20x2. Members can attend the club
for a monthly fee of $ 95 or a yearly fee of $ 1,080 |The monthly fee must be paid in cash.
The yearly fee can be paid in cash (members receive a 10% discount if they pay the full fee in
advance) or members can sign a yearly contract but pay monthly (at
$ 90 per month). There
is also a one-day pass available for a fee of
$ 13
For all fees received, the Unearned Membership Fees account is initially credited and then
adjusted at the end of each month. When a member signs an annual contract, but wants to
pay monthly, the club debits the Cash account for the initial amount received (the amount for
the first month) and debits the Accounts Receivable account for the balance.
Lockers can also be rented for long-term use. The monthly fee is
$ 14 and $ 140 per year.
All locker fees must be paid in cash. When the club receives locker fees, it initially credits the
Unearned Locker Fees account. Adjustments for fees earned occur at the end of each month.
Additional information:
1) The club prepares financial statements monthly; all adjustments are made monthly.
2) A one year liability insurance policy was purchased on October 1, 20x5; the premium paid
$ 4,920
3) All assets are being depreciated on a straight-line basis.
a) The building was purchased on January 1, 20x2. Original cost:
Estimated useful life (in years):
$ 396,000
b) The health club equipment was purchased on September 1, 20x5. Original cost:
Estimated useful life (in years):
$ 165,000
c) The office equipment was purchased on April 1, 20x4. Original cost:
Estimated useful life (in years):
$ 36,480
4) There is an outstanding one-year note payable, dated November 1, 20x5; principal
and interest will be due on November 1, 20x6.
Principal amount of the note:
Interest rate on the note (per year)
$ 250,000
Interest expense accrued and recorded at the end of November, 20x5:
5) A complete chart of accounts used by the Heights Fitness Club appears on page 2.
The trial balance dated November 30, 20x5 (on page 3) represents the post-closing trial balance
at that date (i.e., this is the trial balance after all adjustments and closing entries have been
recorded and posted for the month of November, 20x5.)

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