Question

Journalize these transactions, post the transactions to the ledger accounts, prepare a trial balance.

Assets

111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building 123 Accumulated Depreciation, Building

124 Pool/Slide Facility 125 Accumulated Sepreciation, Pool/Slide Facility 126 Pool Furniture 127 Accumulated Depreciation, Pool Furniture

Liabilities

221 Accounts Payable 222 Wages Payable 223 Mortgage Payable

Owners Equity

311 L. Judar, Capital 312 L. Judar, Drawing 313 Income Summary

Revenue

411 Income from services 412 Concessions Income

Expenses

511 Pool Maintenance Expense 512 Wages Expense 513 Advertising Expense 514 Utilities Expense 515 Interest Expense

517 Insurance Expense 518 Depreciation Expense, Building 519 Depreciation Expense, Pool/Slide Facility

520 Depreciation Expense, Pool Furniture 522 Miscellaneous Expense

July 1 Judar Deposited $135,000 in a bank account for the purpose of buying Blast Off! The buisness is a recreation area offereing three large waterslides.

July 2 Bought Blast Off! in its entirety for a total price of $540,800. The assets include pool furniture, $3,800; the pool/slide facility, $148,000; building, $96,200; and land, $292,000. Paid $120,000 down and signed a mortgage note for the remainder.

July 2 Recieved and paid the bill for a one-year premium for insurance, $12,240

July 2 Bought 125 inner tubes from Worn Tires for $1,225, paying $500 down, with the remainer due in 20 days.

July 3 Signed a contract with a video game company to lease space for video games and provide a food concession. The rental income agreed upon 10 percent of the revenues generated from the machines and food, with the estimated monthly rental income paid in advance. Recieved cash payment for July, $250.

July 5 Recieved bills totaling $1,320 for the grand opening/Fourth of July party. The bill from Party Rentals for the promotional handouts, decorations, and prizes was $620, and the newspaper advertising bills from the City Star were $700. (These expenses are all advertising).

July 6 Signed a one-year contract for the pool maintenance with All-Around

July 6 Paid cash for employee picnic food and beverages, $128. (Debit and Miscellaneous Expense)

July 7 Recieved $12,086 in cash as income for the use of the facilities

July 9 Bought parts for the filter system on account from Arlen's Pool Supply, $646 (Debit pool maintence expense)

July 14 Recieved $10,445 in cash as income for the use of the facilities

July 15 Paid wages to employees for the period ended July 14, $9,460

July 16 Paid $1,150 cash as partial payment on account for promotional expenses recorded on July 5. Party Rentals was paid $620 and City Star was paid the remainder of $530.

July 16 Judar withdrew cash for personal use, $2,500

July 17 Bought additional pool furniture from Pool Suppliers for $2,100; payment due in 30 days

July 18 Paid cash to seamstress for alterations and repairs to the character costumes, $328. (Debit Miscellaneous Expense)

July 21 Recieved $10,330 in cash as income for the use of the facilities.

July 21 Paid cash to Worn Tires as partial payment on account, $600

July 23 Recieved a $225 reduction of our account from Pool Suppliers for lawn chairs recieved in damaged condition.

July 25 Recieved and paid telephone bill $292

July 29 Paid wages for the period July 15 through 28 of $8,227

July 31 Recieved $11,870 in cash as income for the use of the facilities

July 31 Paid cash to Arlen's Pool Supply to apply on account, $360.

July 31 Recieved and paid water bill, $684.

July 31 Paid cash as an installment payment on the mortgage, $3,890. Of this amount, $1,910 represents a reduction in the principal and the remainder is interest.

July 31 Recieved and paid electric bill, $942

July 31 Bought additional inner tubes from Worn Tires for $480, paying $100 down, with the remainder due in 30 days.

July 31 Judar withdrew cash for personal use, $3,200

July 31 Sales for the video and food concessions amounted to $4,840, and 10 percent of $4,840 equals $484. Because you have already recorded $250 as concessions income, record the additional $234 revenue due from the concessionaire. (Cash was not recieved).

Answer 1