Chapter 2 (Accounting Cycle Steps 2, 3, & 4) ACCOUNTING CYCLE STEP 2: Journalize each of the following Blue Raider Adventure transactions in the general journa; you may omit explanation papers in your packet. Park (BRAP) s Use the general journal working August 1 Matt opens a business checking account in the name Matt had of BRAP and makes an initial deposit of $5.000 withdrawnes S5.000 from his personal savings acco August 1 Matt is unable to borrow money from the local bank given his youth, lack of business experience, and k of a substantial credit history. However, his grandfather fully supports Matt's efforts to become n entrepreneur, so he loans Matt $7,000 at 6% interest to be repaid in two years. Matt deposits these funds into the BRAP Matt Eoes to Play it Again Sports and pays 51,925 to purchase gently used canoes, paddies lifejackets, ziplining harnesses, etc. to be used the park. (These items will collect ivgly be identifie n the acc August 15 August 20 August 28 purchases a large, attractive sign for the new park at a cost of $750. The sign maker knows Matt Matt she agrees to extend credit to BRAP for 0 300 to create, print, and distributer Byers to all the local schools and youth organizations to t the new BRAP pays $ BRAP pays,a total of $5,620 to have the child-appropriate obstacle and zipline courses constructed that same day; inspection and certification.are inchided in these amounts. (These two courses will be identified a Courses n the accounting records. September 1 Matt recognizes the fact that he could be sued if a child gets hurt in the park, so BRAP Rys 5615 to September 7Matt establishes a 30-day credit account at a local business on behalf of BRAP. He immediately uses 2S September 10 BRAP sells 60 tickets for $15 eachto September 14 BRAP pays for the sign purchased on August1 the account to purchage S46 in various s for the school children for admission to the that same day All ticket sales by BRAP are cash sales unless herwise noted September 17 The Boys and Girls Club of Rutherford County brings 80 disadvantaged children to BRAP. Matt agrees to accept a reduced price of $12.00 per ticket and wait 30 days to receiye payment, which will be paid the Club rather than by the children. September 18 BRAR pays $75 to have the s mowed at the September 22 BRAP sells 45 tickets for $15 each for children in two local Boy Scout trgops for admission to the park September 24 BRAP eceivesa check from the Boys and Girls Club of Rutherford County in the amount ot $450 to September 25 BRAP pays wages in the amount of $365 to two of Matt's friends who worke September 28 Matt is satisfied that BRAP has moret on that sa tickets d on days when children were in the park to assist the children with the various activities ficient so he writes himself a company checkfor $800 and deposits it into his own personal checking account BRAP receives a check in the amount of $345 from MS. Hughes, a local teachr, to purchase tickets for her 2nl graders. She plans to bring them to BRAP for a field trip on October 3 September 30 Journalizing is the process of recording each transaction in the general journal in chronological (date) order using appropriate account titles and properly characterizing Helpful Hints the increase or decrease to each account as either a debit or a credit, based on the account's normal balance, Debit lines are listed first, credits account titles are slightly indented, and DEBIT AMOUNTS MUST EQUAL CREDIT AMOUNTS for each and every individual transaction
