A. Prepare the necessary journal entries to record the transactions below. Use the chart of accounts shown in Table 1.

B. Begining with the June 1 account balances shown in Table 2, create a worksheet which shows the ending balances in all accounts after the monthly journal entries have been posted.

C. Journalize the closing entries.

D. Create a post-closing trial balance.

E. Use info to create Income Statement & Balance Sheet.

Trasactions:

1. During June, seasonal plants and paint costs $1,500,000 paid in cash. (Use maintenance expense).

2. Season passes are sold for $600,000 cash.

3. Water chemical inventory used - $250,000

4. Water Saline inventory used - $30,000

5. Cash admissions - $2,500,000

6. Concession sales totaled $700,000 in cash for goods costing $250,000

7. Cash salaries paid for the month. You may ignore withholding and taxes. Expense Salary Operating - $250,000 and Expense Salary Administrative - $225,000

8. Bought animal food and supplements costing $60,000 on account to feed the animals in the amusement park. $100,000 of food was used during the month.

9. The cost of utilities for the month totaled $25,000 which was immediately paid.

10. At the end of the month, depreciation on the buildings and equipment is recorded. The buildings and equipment have an expected useful life of 35 years, and a salvage value of $5,000,000. Use straight line depreciation techniques to depreciate the building and equipment.

11. June interest on the note payable is accrued. The annual interest rate on the note payable is 6% and the payment is due on January 1 of each year.

12. Season ticket revenue is recorded for the month.

13. Prepaid insurance is adjusted. The balance as of June 1 represents 8 months of remaining coverage.

Table 1

Assets Cash Prepaid Insurance Inventory: administration Inventory: animal food Inventory: concession Inventory: finished goods Inventory: raw materials Inventory: water chemicals Inventory: water saline Inventory: work in process Manufacturing Overhead Building and Equipment Land	Liabilities Accounts payable Interest payable Notes payable Stockholders' equity Stock Retained earnings Income summary
Income Admission Revenues Concession Sales Plush Toy Sales	Expenses Cost of goods sold Animal food expense Depreciation expense Insurance expense Interest expense Maintenance expense Salaries expense-Operation Salaries expense-Administration Selling & administrative expense Utilities expense Water treatment expense

Table 2-Account Balances

Cash	$1,000,000.00
Prepaid Insurance	$4,000,000.000
Inventories:
Animal Foods	$50,000.00
Water Chemicals	$255,000.00
Water Saline	$31,500.00
Concession	$450,000
Administrative	$60,000
Land	$16,000,000.00
Buildings & Equip	$26,000,000.00
Accum Depreciation Bldg & Equip	$(11,000,000.00)
Season Passes	$(600,000.00)
Notes Payable	$(23,000,000.00)
Stock	$(4,000,000.00)
Retained Earnings	$(9,246,500.00)