CHAPTER 5 CLOSING ENTRIES AND THE POST-CLOSING TRIAL BALANCE Accounting Cycle Review Problem A This problem is designed to enable you to apply the knowledge you have acquired in the preceding chapters. In accounting, the ultimate test is being able to handle data in real-life situations. This problem will give you valuable experience. CHART OF ACCOUNTS QuickBooks Revenue 411 Income from Services 412 Concessions Income Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building 123 Accumulated Depreciation, Building 124 Pool/Slide Facility 128 Accumulated Depreciation, Pool/ Slide Facility 126 Pool Furniture JT Accumulated Depreciation, Pool Furniture Expenses 511 Pool Maintenance Expense 512 Wages Expense 513 Advertising Expense 514 Utilities Expense 515 Interest Expense 517 Insurance Expense 518 Depreciation Expense, Building 529 Depreciation Expense, Pool/Slide Facility 520 Depreciation Expense, Pool Furniture 522 Miscellaneous Expense Liabilities 221 Accounts Payable 222 Wages Payable 223 Mortgage Payable Owner's Equity 311 L. Judar, Capital 312 LJudar, Drawing 313 Income Summary You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle. When you are analyzing the transactions, think them through by visualizing the T accounts 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. July1 Judar deposited 135.000 in a bank account for the purpose of buying as 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. Bought Blast Off in its entirety for a total price of $540,800. The assets Indude pool furniture, SLO the pool/slide facility (includes filter system, pools, pump, and slides), 5148,800, building, 596,200, and land, $292,000 Paid $120,000 down and signed a mortgage note for the remainder Received and paid the bill for a one-year premium for insurance, $12.240. Bought 125 inner tubes from Worn Tires for $1,225. paying $500 down, with the remainder due in 20 days. 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. (Continued CHAPTER 5 CLOSING ENTRIES AND THE POST-CLOSING TRIAL BALANCE Accounting Cycle Review Problem A This problem is designed to enable you to apply the knowledge you have acquired in the preceding chapters. In accounting, the ultimate test is being able to handle data in real-life situations. This problem will give you valuable experience. CHART OF ACCOUNTS QuickBooks Revenue 411 Income from Services 412 Concessions Income Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building 123 Accumulated Depreciation, Building 124 Pool/Slide Facility 128 Accumulated Depreciation, Pool/ Slide Facility 126 Pool Furniture JT Accumulated Depreciation, Pool Furniture Expenses 511 Pool Maintenance Expense 512 Wages Expense 513 Advertising Expense 514 Utilities Expense 515 Interest Expense 517 Insurance Expense 518 Depreciation Expense, Building 529 Depreciation Expense, Pool/Slide Facility 520 Depreciation Expense, Pool Furniture 522 Miscellaneous Expense Liabilities 221 Accounts Payable 222 Wages Payable 223 Mortgage Payable Owner's Equity 311 L. Judar, Capital 312 LJudar, Drawing 313 Income Summary You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle. When you are analyzing the transactions, think them through by visualizing the T accounts 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. July1 Judar deposited 135.000 in a bank account for the purpose of buying as 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. Bought Blast Off in its entirety for a total price of $540,800. The assets Indude pool furniture, SLO the pool/slide facility (includes filter system, pools, pump, and slides), 5148,800, building, 596,200, and land, $292,000 Paid $120,000 down and signed a mortgage note for the remainder Received and paid the bill for a one-year premium for insurance, $12.240. Bought 125 inner tubes from Worn Tires for $1,225. paying $500 down, with the remainder due in 20 days. 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. (Continued