Chapter 2 (Accounting Cycle Steps 2, 3,& 4) ACCOUNTING CYCLE STEP 2: Journalize each of the following Blue Raider Adventure Park (BRAP) transactions in the general journal; you may omit explanations. Use the general journal working papers in your packet. s checking account in the name of BRAP and makes an initial deposit of $5,000. local bank given his youth, lack of business experience, and al credit history. However, his grandfather fully supports Matt's efforts to become August 1 a business Matt o Matt had previously withdrawn this $5,000 from his personal savings account. Matt is unable to borrow money from the August 1 an entrepreneur, so he loans Matt $7,000 at 6% interest to be repaid in two years. Matt deposits these funds into the BRAP c account. August 7 ain Sports and pays $1,925 to purchase gently used canoes, paddles, g harnesses, etc. to be used the park. (These items will collectively be identified as lifejackets, ziplinin Equipment" in the accounting records) large, attractive sign for the new park at a cost of $750. The sign maker knows Matt August 15 August 20 August 28 family, so she agrees to extend credit to BRAP f BRAP pays $300 to create, print, and distribute flyers to all the local schools and youth organizations to or 30 ertise that the new park will open on September 1. RAP pays a total of $5,620 to have the child-appropriate obstacle and zipline courses constructed that same day; inspection and certification are included in these amounts. (These two courses will Activity Courses" in the accounting reco collect be identified as September 1 Matt recognizes the fact that he could be sued if a child gets hurt in the park, so BRAP pays $615 to September 7 September 10 BRAP sells 60 tickets for $15 each to local school children for admission to the park on that same day r 30 purchase 3 months of general liability insurance for coverage from September 1 through Novembe att establishes a 30-day credit account at a local business on behalf of BRAP. He immediately uses the account to purchase $460 in various supplies for the park ticket sales by BRAP are cash sales unless otherwise noted 14 BRAP pays for the purcha t 15 September 17 The Boys and Girls Club of Rutherford County brings 80 disadvantaged children to BRAP. Matt agr to accept a reduced price of $12.00 per ticket and wait 30 days to receive payment, which will be paid the Club rather than by the children. mber 18 BRAP pays $75 to have the grass mowed at the September 22 BRAP sells 45 tickets for $15 each for children in two local Boy Scout troops for admission to the park September 24 BRAP receives a check from the Boys and Girls Club of Rutherford County in the amount of $450 to September 25 BRAP pays wages in the amount of $365 to two of Matt's friends who worked on days when children September 28 Matt is satisfied that BRAP has more than a sufficient amount of operating cash in its checking account, September 30 BRAP receives a check in the amount of $345 from Ms. Hughes, a local teacher, to purchase tickets for partially pay for the tickets purchased on September 17 were in the park to assist the children with the various activities. so he w rites himself a company check for $800 and deposits it into his own personal ch account. er 2d graders. She plans to bring them to BRAP for a field trip on October 3 Journalizing is the process of recording each transaction in the general journal in chronological (date) order using appropriate account titles and the increase or accoun ndente properly characterizing se to each account as either a debit or a credit, based on the Helpful Hints mal balance. Debit lines are listed first, credits account titles are slightly d DEBIT AMOUNTS MUST EQUAL CREDIT AMOUNTS for each and every dividual transaction