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LG	11-2,  continued
	g.   The club receives but does not pay the telephone bill of $185.

Assets	=

$47,670

	Cash		Accounts Receivable		Prepaid Insurance		Gym Supplies		Gym Equipment
	Increase	Decrease	Increase	Decrease	Increase	Decrease	Increase	Decrease	Increase	Decrease
(Bal)	15,450		5,000		1,500		720		25,000
G
(New Bal.)	15,450		5,000		1,500		720		25,000

h.  The club pays $200 of the accounts payable.

Assets	=

$47,470

	Cash		Accounts Receivable		Prepaid Insurance		Gym Supplies		Gym Equipment
	Increase	Decrease	Increase	Decrease	Increase	Decrease	Increase	Decrease	Increase	Decrease
(Bal)	15,450		5,000		1,500		720		25,000
H		200
(New Bal.)	15,250		5,000		1,500		720		25,000

i.  The club borrows $50,000 from the 5th National Bank and signs a 15-year note .

Assets	=

$97,470

	Cash		Accounts Receivable		Prepaid Insurance		Gym Supplies		Gym Equipment
	Increase	Decrease	Increase	Decrease	Increase	Decrease	Increase	Decrease	Increase	Decrease
(Bal)	15,250		5,000		1,500		720		25,000
I	50,000
(New Bal.)	65,250		5,000		1,500		720		25,000

S8

Section III · Transactions—Basic Recording Concepts

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