Question

Great Games Company operates miniature golf courses throughout southern Arizona. On July 1, 2016, Great Games’ balance sheet showed (all dollar figures in thousands):

Cash $40 -- Accounts Payable $50 -- Credit Card Receivables 25 -- Accruals Payable 0 -- Golf Supplies 35 -- Long-term Notes Payable 0 -- Office Equipment (net) 45 -- Common Stock 65 -- Retained Earnings 30

Draft the journal Entry and Balance Sheet

During July the following events occurred to Great Games:
a) Collected $20 cash on credit card receivables due from customers.
b) Paid $27 on accounts payable that had come due.
c) Deposited in the bank $30 of rental fees earned from customers.
d) Customer rental fees of $64 were accepted on credit cards; credit card receipts were
submitted to Trusty Bank. Cash collection from bank is expected in August.
e) Bought $2 of golf supplies (balls) on an account to be paid in August.
f) Paid employee wages of $15.
g) Received a $3 electricity bill in July; this bill will be paid in August.
h) Paid rent for July, $9.
i) Bought office equipment costing $20. Paid $5 now and signed a note payable for
the remainder, due on December 30, 2018.
j) The note payable incurred $1 of interest during July; interest is to be paid in December.
k) Signed a contract for $7 for billboard advertising to be shown during August.
Payment will not be made until after the advertisements have been displayed.
l) Trusty Bank notified Great Games that it had collected $33 of credit card receipts.
m) Declared a cash dividend of $5 to shareholders who founded the company. Payment
will be made in December, 2016.
n) Counted $24 of golf supplies remaining at the end of July.
o) Great Games received $30 for additional stock issued to friends of the founders.
p) Estimated income taxes of $21 for July 2016. These will be paid next March 2017.

Answer 1

Great Games Company
General Journal for the month of July ,2016
Ref	Account Title	Debit	credit
a	Cash	20
	Credit Card Receivables		20
b	Acounts Payable	27
	Cash		27
c	Cash	30
	Rental fee earned		30
d	Credit Card Receivables	64
	Rental fee earned		64
e	Golf Supplies	2
	Acounts Payable		2
f	Wages Expense	15
	Cash		15
g	Utility expense	3
	Acounts Payable		3
h	Rent Expense	9
	Cash		9
i	Office Equipment	20
	Cash		5
	Long-term note payable		15
j	Interest expense	1
	Interest payable		1
k	No entry required
l	Cash	33
	Credit Card Receivables		33
m	Dividend	5
	Dividend payable		5
n	Golf supplies expense	13
	Golf Supplies		13
o	Cash	30
	Common Stock		30
p	Income tax expense	21
	Income tax payable		21
	Great Games Company
	Balance Sheet as at July31, 2016
	Assets
	Cash	97
	Credit Card Receivables	36
	Golf Supplies	24
	Current Assets	157
	Office Equipment	65
	Total Assets	222
	Liabilities and equity
	Accounts Payable	28
	Accruals Payable	1
	Income tax payable	21
	Current Liabilities	50
	Long-term note payable	15
	Total liabilities	65
	Equity
	Common Stock	95
	Retained earnings	62
	Total Equity	157
	Total liabilities and equity	222

Working:

Great Games Company
Worksheet for the month of July 2016
	Opening		Transactions		Unadjusted		Income Statement		Balance Sheet
Account	Debit	credit	Debit	credit	Debit	credit	Debit	credit	Debit	credit
Cash	40		113	56	97				97
Credit Card Receivables	25		64	53	36				36
Golf Supplies	35		2	13	24				24
Accounts Payable		50	27	5		28				28
Accruals Payable	0			1		1				1
Income tax payable				21		21				21
Office Equipment	45		20		65				65
Long-term note payable		0		15		15				15
Common stock		65		30		95				95
Retained Earnings		30				30				62
Rental fee earned				94		94		94
Wages Expense			15		15		15
Utility expense			3		3		3
Rent Expense			9		9		9
Interest expense			1		1		1
Golf Supplies Expense			13		13		13
Income tax expense			21		21		21
	145	145	288	288	284	284	62	94	222	222
Income Summary							32
Total	145	145	288	288	284	284	94	94	222	222