Bondi Yoga Studio After a number of years as a successful Chartered Accountant at a national firm, you decide to quit the rat race and pursue your true love - yoga. You decide that your neighbourhood...

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Bondi Yoga Studio After a number of years as a successful Chartered Accountant at a national firm, you decide to quit the rat race and pursue your true love - yoga. You decide that your neighbourhood would be the perfect place to open a yoga studio. Even better, your friend Yogi, a certified yoga instructor, has just moved to town and is willing to teach at the studio. You hurriedly prepare to open the studio, Bondi Yoga, by July 1 2020. In preparation for your opening, you engage in the following transactions on July 1 2020: 1. You contribute $8,000 in cash to start the business. 2. You purchase $1,000 worth of equipment for use during classes for cash. 3. You purchase an additional $1,500 worth of yoga mats and clothing for sale at the studio, for cash. 4. You purchase liability insurance at a total cost of $1,200. The policy covers July 1 2020 through to December 31 2020. The following transactions took place during July 2020 Date Transaction July 5 You collected $1,200 in total from new members as membership fees for July 2020 in cash.        15 Yogi, the yoga instructor is paid $600 as salary for July 2020.        20  Rent is paid for the month of July 2020 in cash $1,000.        30   You received the bills for electricity $150 and telephone $50 for the month of July. This will be paid on August 15 2020.    The following transactions took place during August 2020 Date Transaction August  5 You collected $1,500 in total from members as membership fees in cash. Of this amount, $1,200 is for classes that members will attend in August and $300 is for classes that they will attend in September 2020.               15 Yogi, the yoga instructor earns $600 for teaching yoga classes in August 2020. Of this amount, $300 is paid on August 15, 2020 and the remaining $300 will be paid on September 15, 2020.              17 Sold yoga mats for $250 in cash.               19 You were running low on cash, so you borrowed $4000 in cash from your local bank. This loan will have to be repaid after 3 years.               20  Rent is paid for the month of August 2020 in cash $1,000.              25 A client who had paid $20 for yoga classes in August was very dissatisfied with her classes. She wanted a refund. You agreed to refund the $20 paid by the client.               30    You received the bills for electricity $170 and telephone $60 for the month of August. This will be paid on September 15 2020.              30 You withdrew $500 of your investment from the business to pay for your personal expenses.                30 A stock take reveals that you have $1300 of yoga mats and clothing in stock.   Required: 1. Record the transactions in the general journal of Bondi Yoga Studios.  2. Post the general journal entries to the ledger accounts. 3. Journalise and post adjusting entries. 4. Journalise and post, closing entries. 5. Prepare a post-closing trial balance. 6. Prepare the Income Statement for Bondi Yoga Studios for the period ending 31 August 2020.  7. Prepare the Balance Sheet for Bondi Yoga Studios as at 31 August 2020. 8. Evaluate the financial performance of Bondi Yoga Studios using at least one profitability ratio.   Note: Use the MS Excel Spreadsheet Template provided in the Resources folder for AT2 Project to complete requirements 1 to 8.   Bondi Yoga Studio After a number of years as a successful Chartered Accountant at a national firm, you decide to quit the rat race and pursue your true love - yoga. You decide that your neighbourhood would be the perfect place to open a yoga studio. Even better, your friend Yogi, a certified yoga instructor, has just moved to town and is willing to teach at the studio. You hurriedly prepare to open the studio, Bondi Yoga, by July 1 2020. In preparation for your opening, you engage in the following transactions on July 1 2020: 1. You contribute $8,000 in cash to start the business. 2. You purchase $1,000 worth of equipment for use during classes for cash. 3. You purchase an additional $1,500 worth of yoga mats and clothing for sale at the studio, for cash. 4. You purchase liability insurance at a total cost of $1,200. The policy covers July 1 2020 through to December 31 2020. The following transactions took place during July 2020 Date Transaction July 5 You collected $1,200 in total from new members as membership fees for July 2020 in cash.        15 Yogi, the yoga instructor is paid $600 as salary for July 2020.        20  Rent is paid for the month of July 2020 in cash $1,000.        30   You received the bills for electricity $150 and telephone $50 for the month of July. This will be paid on August 15 2020.    The following transactions took place during August 2020 Date Transaction August  5 You collected $1,500 in total from members as membership fees in cash. Of this amount, $1,200 is for classes that members will attend in August and $300 is for classes that they will attend in September 2020.               15 Yogi, the yoga instructor earns $600 for teaching yoga classes in August 2020. Of this amount, $300 is paid on August 15, 2020 and the remaining $300 will be paid on September 15, 2020.              17 Sold yoga mats for $250 in cash.               19 You were running low on cash, so you borrowed $4000 in cash from your local bank. This loan will have to be repaid after 3 years.               20  Rent is paid for the month of August 2020 in cash $1,000.              25 A client who had paid $20 for yoga classes in August was very dissatisfied with her classes. She wanted a refund. You agreed to refund the $20 paid by the client.               30    You received the bills for electricity $170 and telephone $60 for the month of August. This will be paid on September 15 2020.              30 You withdrew $500 of your investment from the business to pay for your personal expenses.                30 A stock take reveals that you have $1300 of yoga mats and clothing in stock.   Required: 1. Record the transactions in the general journal of Bondi Yoga Studios.  2. Post the general journal entries to the ledger accounts. 3. Journalise and post adjusting entries. 4. Journalise and post, closing entries. 5. Prepare a post-closing trial balance. 6. Prepare the Income Statement for Bondi Yoga Studios for the period ending 31 August 2020.  7. Prepare the Balance Sheet for Bondi Yoga Studios as at 31 August 2020. 8. Evaluate the financial performance of Bondi Yoga Studios using at least one profitability ratio.   Note: Use the MS Excel Spreadsheet Template provided in the Resources folder for AT2 Project to complete requirements 1 to 8.
Answered 11 days AfterMar 12, 2021

Answer To: Bondi Yoga Studio After a number of years as a successful Chartered Accountant at a national firm,...

Nitish Lath answered on Mar 23 2021
145 Votes
General Journal
        Bondi Yoga Studio
        General Journal
        Date    Accounts    Debit ($)    Credit ($)
        Jul-01    Cash    8000
            Capital        8000
        Jul-01    Studio Equipment    1000
            Cash        1000
        Jul-01    Yoga mat and clothing Inve
ntory    1500
            Cash        1500
        Jul-01    Prepaid insurance    1200
            cash        1200
        Jul-05    Cash    1200
            Studio Membership fees revenue        1200
        Jul-15    Salaries and wages expense    600
            Cash        600
        Jul-20    Rent expense    1000
            Cash        1000
        Jul-30    Electrivity expense    150
            Telephone expense    50
            Bills payable        200
        Aug-05    Cash    1500
            Studio Membership fees revenue        1200
            Studio membership fees received in advance        300
        Aug-15    Salaries and wages expense    600
            Cash        300
            Salaries and wages payable        300
        Aug-15    Bills payable    200
            Cash        200
        Aug-17    Cash    250
            Revenue from sale of yoga mat and clothing        250
            Cost of yoga mat and clothing sold    200
            Inventory        200
        Aug-19    Cash    4000
            Bank loan        4000
        Aug-20    Rent expense    1000
            Cash        1000
        Aug-25    Studio Membership fees revenue    20
            Cash        20
        Aug-30    Electrivity expense    170
            Telephone expense    60
            Bills payable        230
        Aug-30    Drawings    500
            Cash        500
General Ledger
        Bondi Yoga Studio
        General Ledger
        Cash at Bank
        Date    Accounts    Debit ($)    Credit ($)    Balance ($)
        Jul-01    Capital    8000        8000
        Jul-01    Studio Equipment        1000    7000
        Jul-01    Yoga mat and clothing inventory        1500    5500
        Jul-01    prepaid insurance        1200    4300
        Jul-05    Studio Membership fees revenue    1200        5500
        Jul-15    salaries and wages expense        600    4900
        Jul-20    Rent expense        1000    3900
        Aug-05    revenue    1500        5400
        Aug-15    salaries and wages expense        300    5100
        Aug-15    bills payable        200    4900
        Aug-17    sales from inventory    250        5150
        Aug-19    bank loan    4000        9150
        Aug-20    Rent expense        1000    8150
        Aug-25    Studio membership fee revenue        20    8130
        Aug-30    drawings        500    7630
        Capital
        Date    Accounts    Debit ($)    Credit ($)    Balance ($)
        Jul-01    cash        8000    8000
        Aug-31    income summary    1600        6400
        Aug-31    drawings    500        5900
        Studio Equipment
        Date    Accounts    Debit ($)    Credit ($)    Balance ($)
        Jul-01    cash    1000        1000
        Yoga mats and clothing...
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