511 Accounting Cycle Review 1. Record all transactions on the General Journal Tab. Include Date in first line of transaction, Account name in description column, Account number in Post Ref column, and amount in Debitor Credit column. Amounts will automatically post to Ledger accounts (tabs). General Journal has been preformatted for each transaction. CHART OF ACCOUNTS Assets Revenue 111 Cash Income from Services 112 Accounts Receivable 412 Concession Income 114 Prepaid Insurance Expenses 121 Land Pool Maintenance Expense 122 Building 512 Wages Expense 123 Accumulated Depreciation, Building 513 Advertising Expense 124 Pool/Slide Facility 514 Utilities Expense 125 Accumulated Depreciation, Pool/Slide Facility 515 Interest Expense 126 Pool Furniture 517 Insurance Expense 127 Accumulated Depreciation, Pool Furniture 518 Depreciation Expense, Building Liabilities 519 Depreciation Expense, Pool/Slide Facility 221 Accounts Payable 520 Depreciation Expense, Pool Furniture 222 Wages Payable 522 Miscellaneous Expense 223 Mortgage Payable Owner's Equity 311 L. Judar, Capital 312 L. Judar, Drawing 313 Income Summary Recording July Transactions: When you are analyzing the transactions, think them through by visualizing the Taccounts or by writing them down on scratch paper. For unfamiliar types of transactions, specific instructions for recording them are included. However, reason them out for yourself as well. Check off each transaction as it is recorded. July 1 Judar deposited $135,000 in a bank account for the purpose of buying Blast Off! The business is a recreation area offering three large waterslides (called "tubes") - one children's slide, an inner tube run, and a looping extreme slide. 2 Bought Blast Off! In its entirety for a total price of $540,800. The assets include pool furniture, $3,800; Pool/slide facility (includes filter system, pools, pump, and slides), $148,800; Building, $96,200; and Land, $292,000. Paid $120,000 down and signed a mortgage note for the remainder. 2 Received and paid the bill for a one-year premium for insurance, $12,240. 2 Bought 125 inner tubes from Worn Tires for $1,225, paying $500 down, with the remainder due in 20 days. 3 Signed a contract with a video game company to lease space for video games and to provide a food concession. The rental income agreed upon is 10 percent of the revenues generated from the machines and food, with the estimated monthly rental income paid in advance. Received cash payment for July, $250. 5 Received bills totaling $1,320 for the grand opening/Fourth of July party. The bill from Party Rentals for promotional handouts, balloons, decorations, and prizes was $620, and the newspaper advertising bills from the City Star were $700. 6 Signed a one-year contract for the pool maintenance with All Around Maintenance and paid the maintenance fee for July of $1,600. 6 Paid cash for employee picnic food and beverages, $128. (Miscellaneous Expense.) 7 Received $12,086 in cash as income for the use of the facilities. 9 Bought parts to repair the filter system on account from Arlen's Pool Supply, $646. 14 Received $10,445 in cash as income for the use of the facilities. 15 Paid wages to employees for the period ended July 14, $9,460. 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. 16 Judar withdrew cash for personal use, $2,500. 17 Bought additional pool furniture from Pool Suppliers for $2,100; payment due in 30 days. 18 Paid cash to seamstress for alterations and repairs to the character costumes, $328. (Miscellaneous Expense.) 21 Received $10,330 in cash as income for the use of the facilities. 21 Paid cash to Worn Tires as partial payment on account, $600. 23 Received a $225 reduction of our account from Pool Suppliers for lawn chairs received in damaged condition. 25 Received and paid telephone bill, $292. 29 Paid wages for the period July 15 through 28 of $8,227. 31 Received $11,870 in cash as income for the use of the facilities. 31 Paid cash to Arlen's Pool Supply to apply on account, $360. 31 Received and paid water bill, $684. 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. 31 Received and paid electric bill, $942. 31 Bought additional inner tubes from Worn Tires for $480, paying $100 down, with the remainder due in 30 days. 31 Judar withdrew cash for personal use, $3,200. 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 received.) 1. Review the Trial Balance Report on the Trial Balance Tab. Print this Sheet. a. File > Print > Print active Sheet > PRINT 2. Journalize the Adjusting Entries. Data for the adjustments are as follows: Insurance expired during the month, $1,020. b. Depreciation of building for the month, $480. Depreciation of pool/slide facility for the month, $675. d. Depreciation of pool furniture for the month, $220. Wages accrued at July 31, $920. a. C. e. 3. Post the Adjusting entries. These are not automatically generated as early) 4. Review the Income Statement and Statement of Owner's Equity. Print both of these Sheets. a. File > Print > Print active Sheet > PRINT 5. Journalize the Closing Entries. 6. Post the Closing Entries 7. Review the Balance Sheet. Print the Balance Sheet. a. File > Print > Print active Sheet > PRINT 8. Make sure this is in your Office 365 account and shared with your instructor. Documents to Hand in Trial Balance CHECK FIGURES: Trial Balance: $601,941 Net Income: $16,293 Post-closing Balance total: $568,239 Income Statement Statement of Owner's Equity Balance Sheet