Question

The following transactions occurred during the month of December 2019:

Dec.	5	Paid accounts payable of $4,950.
	6	Paid stadium rental of $8,500 in advance.
	6	Purchased supplies, $720, on account.
	7	Deposited $16,000 of admissions receipts.
	9	Unearned admissions revenue is for gift certificates purchased for admission into future shows. $480 more of these gift certificates were sold to a local restaurant business, for cash.
	10	Purchased $2,150 of concessions items on credit.
	12	Acquired additional equipment worth $34,000 by paying $500 cash and giving a long-term note payable for the balance.
	14	Paid wages of $14,200 for the period December 1 through 14.
	16	Paid for the supplies purchased on December 6.
	17	Purchased $1,800 of supplies on credit.
	19	Sold 600 shares of $10 par value common stock for $10 a share.
	21	Deposited $22,750 from concessions sales and $10,660 of admissions receipts.
	24	Paid $1,600 for repairs to roof for weather damage.
	25	Purchased $8,200 of concessions items on account.
	27	Paid for the supplies purchased on December 17.
	28	Paid wages of $17,720 for the period December 15 through 28.
	30	Paid $2,500 to newspaper for advertisements that appeared in December.
	31	Deposited $23,000 from admissions receipts and $17,850 from concessions sales.
	31	Declared and paid the annual dividend, amounting to $7,600.

REQUIREMENTS

Please follow these instructions carefully!

1. Prepare journal entries to record the December transactions listed above.

2. Post the December journal entries to the general ledger.

3. Prepare a 6-column worksheet and enter the December 31 unadjusted balances from the general ledger

    accounts. Also enter adjusting entries for the following items on the worksheet, and complete

    the worksheet.

                a. Unpaid wages were $1,160 as of December 31.

                b. The December 31 concessions inventory was $2,015.

                c. The supplies inventory was $3,125 on December 31.

                d. The unexpired portion of the prepaid stadium rental was $2,210 as of December 31.

                e. Depreciation for the year on the equipment was $16,750.

                f. Depreciation for the year on the building was $35,750.

                g. Unpaid utilities expense for December was $1,230.

                h. Interest expense on the note payable for 2019 was $1,750, to be paid when the note matures.

                i. Admissions gift certificates still unredeemed at December 31 totaled $1,500.

4. Journalize and post the adjusting entries to the general ledger. These are the same adjustments that are recorded on the 6-column worksheet.

5. Prepare an income statement, statement of retained earnings, and a balance sheet for the year

    ended December 31, 2019.

6. Journalize and post the closing entries to the general ledger.

Answer 1

Answer 1:

Date	Particulars	Amount (Dr)	Amount (Cr)
05-Dec	Accounts payable	$             4,950
	Cash or Bank Account		$         4,950
06-Dec	Advance rental	$             8,500
	Cash or Bank Account		$         8,500
06-Dec	Supplies Account	$                720
	Accounts payable		$            720
07-Dec	Cash Account	$           16,000
	Concession Sales		$       16,000
07-Dec	Bank Account	$           16,000
	Cash Account		$       16,000
09-Dec	Cash Account	$                480
	Unearned revenue		$            480
10-Dec	Concessions items	$             2,150
	Accounts payable		$         2,150
12-Dec	Equipment Account	$           34,000
	Cash Account		$            500
	LT Note payable Account		$       33,500
14-Dec	Wages Account	$           14,200
	Cash/ Bank Account		$       14,200
16-Dec	Accounts payable	$                720
	Cash/ Bank Account		$            720
17-Dec	Supplies Account	$             1,800
	Accounts payable		$         1,800
19-Dec	Bank Account	$             6,000
	Common stock		$         6,000
21-Dec	Cash Account	$           33,410
	Revenue from admissions		$       10,660
	Concession Sales		$       22,750
21-Dec	Bank Account	$           33,410
	Cash Account		$       33,410
24-Dec	Repairs Account	$             1,600
	Cash / Bank Account		$         1,600
25-Dec	Concessions items	$             8,200
	Accounts payable		$         8,200
27-Dec	Accounts payable	$             1,800
	Cash / Bank Account		$         1,800
28-Dec	Wages Account	$           17,720
	Cash / Bank Account		$       17,720
30-Dec	Advertisement Account	$             2,500
	Cash / Bank Account		$         2,500
31-Dec	Cash Account	$           40,850
	Revenue from admissions		$       23,000
	Concession Sales		$       17,850
31-Dec	Bank Account	$           40,850
	Cash Account		$       40,850
31-Dec	Dividend Account	$             7,600
	Bank Account		$         7,600