Receipts:

Hart’s investment of personal funds $1,400

Court rental fees 7,375

Tennis lesson fess 1,975

Tennis lesson fees received in advance 150

Proceeds of short-term loan from bank 900

Total receipts $11,800

Disbursements:

Purchase of ball-throwing machine 140

Supplies Purchased 960

Utilities 175

Lease payments to city 990

Wages to part-time assistant 1,500

Liability insurance premiums 210

Repayments of bank loan, including interest 920

Withdrawals of cash for personal expenses 750

Total disbursements $5645

Cash balance, August 31, 1993 $6155

a. Some tennis lessons, Paid for in advance, could not be scheduled during the
summer. Lori plans to refund these fees, which total $150.

b. Repayments to the bank included $ 250 of interest expense on the loan.

c. Rental receipts include all revenue earned except for $500 due from a company that rented the entire
set of courts for a weekend late in
August.

d. A ball-throwing machine, purchased used, turned out to be quite temperamental. With a complete
breakdown shortly after it was purchased, it was junked. (Note: Debit Equipment Loss)

e. Supplies consisted of cans of tennis balls. Lori gave away a free can of tennis balls for each five
hours of court time rented by an individual. Supplies amounting to $ 120 were on hand at August 31; these may be returned for a full refund. Lori estimates
that each month during the summer, she took home $15 worth of supplies for personal use.

f. All lease payments due the city were paid except for the final amount of $180.

g. Lori estimates that the utility bill for August, when received, will be $100.

Required

Prepare Adjusting entries from a to g.