ASU FIN 331 Hub City Crossfit (HCCF) is a Box (Gym) in Lubbock,

Hub City Crossfit (HCCF) is a Box (Gym) in Lubbock, Texas. In the project, you
will perform similated accounting for HCCF. You will record transactions in the
journal, post to the ledger, prepare an unadjusted trial balance, perform the
necessary adjustments, prepare an adjusted trial balance, and the four required
financial statements (the entire accounting cycle).
Assume HCCF started April 1, 2014. This will allow all accounts to have a zero
beginning balance.
Transactions (record in the journal in the same order as below):
April 1.
HCCF is created as corporation. The original investment of $ 75,000
is made in exchange for 1,000 shares of $20 par common.
Apr 1 HCCF signed an operating lease on a building, $1,000 per month.
31-Dec
1-Apr HCCF purchased $50,000 of equipment from Rogue Fitness. Payment
was made by using a $30,000 note payable to Capital One and remainder
was paid in cash. (3yr, 5% annual, N/P payments recorded later; asset is
deemed to have an 8 year useful life).
10-Apr Paid $7,500 to welder to build a system of Pullup Bars throughout the box.
(Asset is deemed to have a 15 year life).
Apr 1 Utilities average $250 per month. Just one summarizing entry.
31-Dec
May 1 - Open for business. HCCF will average 100 Box members at an average
31-Dec of $90 per month membership. Just record one summarizing entry
for this event. Use Members Fees account.
May 1 - HCCF pays trainers an average of $2800 per month to teach classes.
31-Dec Employees are paid at the end of each day in cash. Use Trainer Expense
as account title. Just record one summarizing entry for these.
May 1 - Internet and Web page cost $90 per month. HCCF uses the account
31-Dec Internet Expense. Just record one summarizing entry.
May 1 - HCCF pays dividends of $3,000 per month. Just record one summarizing entry.
31-Dec
10-Dec Ordered 100 t-shirts from House of Ink to be sold to members. Cost was
$490 plus $10 shipping. Paid Cash
15-Dec Ordered another 100 t-shirts from Cardinal's Sports Center on account,
$680 plus $20 shipping. This is also to be sold to members. Credit
terms are n/30. Will pay the invoice in January.
Dec 15 - Sold 120 of the various t-shirts for $20 each. HCCF uses the periodic
31-Dec inventory method with LIFO assumption.
At this point, POST all accounts if you have not done so. Then prepare the
UNADJUSTED TRIAL BALANCE portion.
End of year adjustments:
Accrue Interest Expense on long-term Note Payable. Take interest payable
to the actual Note Payable account. However, report on Cash Flow as Current.
Adjust Merchandise Inventory for the amount sold.
Record depreciation on Gym Equipment and Pullup Bars. GE and PB
have 8 and 15 years of useful life respectively. HCCF uses StraightLine method for depreciation. No Residuals. Consider all equipment
as placed into service as of May 1st. Round to nearest dollar for each.
Prepare the Adjusted Trial Balance (extra columns to help see closing entries, not necessary
to record in this project), then the four required financial statements.

Date

Description

Debit

Credit

Date

Description

Debit

Credit

Date

Description

Debit

Credit

Date

Description

Debit

Credit

CASH
Date

Description

Debit

Credit

Balance

Credit

Balance

Credit

Balance

Merchandise Inventory
Date

Description

Date

Description

Debit

Gym Equipment
Debit

Accumulated Depreciation - Gym Equipment
Date

Description

Debit

Credit

Balance

Credit

Balance

Pullup Equipment
Date

Description

Debit

Accumulated Depreciation - Pullup Equipment
Date

Description

Date

Description

Debit

Credit

Balance

Credit

Balance

Accounts Payable - Cardinals
Debit

Notes Payable - Capital One Bank
Date

Description

Debit

Credit

Balance

Credit

Balance

Credit

Balance

Credit

Balance

Credit

Balance

Debit

Credit

Balance

Debit

Credit

Balance

Common Stock, $20 Par
Date

Description

Debit

Paid-In-Capital in Excess of Par
Date

Description

Debit

Retained Earnings
Date

Description

Date

Debit

Description

Dividends
Debit

Members Fees
Date

Description

Sales
Date

Description

Trainer Expense
Date

Description

Date

Description

Debit

Credit

Balance

Credit

Balance

Credit

Balance

Credit

Balance

Credit

Balance

Credit

Balance

Credit

Balance

Rent Expense
Debit

Depreciation Expense
Date

Description

Debit

Utilities Expense
Date

Description

Debit

Cost of Merchandise Sold
Date

Description

Date

Description

Debit

Internet Expense
Debit

Interest Expense
Date

Description

Debit

Account
Cash
Merchandise Inventory
Gym Equipment
Accumulated Depr. - GE
Pullup Equipment
Accumulated Depr. - PE
Accounts Payable - Cardinals
Notes Payable -Capital One
Common Stock
Paid-in-Capital in Excess of Par
Retained Earnings
Dividends
Member Fees
Sales
Trainer Expense
Rent Expense
Depreciation Expense
Utilities Expense
Cost of Merchandise Sold
Internet Expense
Interest Expense
Totals

Unadjusted TB
Debit
Credit

Adjustments
Debit
Credit

Adjusted TB
Debit
Credit

Closing to Ret Earn
Debit
Credit

Revenues:

Total Revenues
Expenses:

Total Expenses
Net Income

Beginning Balance 4-1-2014

Ending Balance 12-31-2014

ASSETS
____________Assets:

____________Assets:

Total Assets:

LIABILITIES & EQUITY
____________Liabilities:
____________Liabilities:
Total Liabilites:
Stockholders' Equity

Total Stockholders' Equity:

Total Liabilities and Stockholders' Equity:

Operating Activities:

Increase in Interest Payable/NP
Cash Flow Operating Activities
Investing Activities:
Cash Flow Investing Activities
Financing Activities:

Cash Flow Financing Activities
Cash Flow
Beginning Cash Balance 4-1-2014
Ending Cash Balance 12-31-2014