CHART OF ACCOUNTS CLGL Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 122 Building 123 Accumulated Depreciation, Building 124 Pool/Slide Facility 125 Accumulated Depreciation, Pool/ Slide Facility 126 Pool Furniture 127 Accumulated Depreciation, Pool Furniture Revenue 411 Income from Services 412 Concessions Income Expenses 511 Pool Maintenance Expense 512 Wages Expense 513 Advertising Expense 514 Utilities Expense 515 Interest Expense 517 Insurance Expense 518 Depreciation Expense, Building 519 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 L. Judar, 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. 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; the 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. (Continued) ounting Cycle for a Service Business: Analyzing Business Transactions ped upon is 10 percent July 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 gay and to provide a food concession. The rental income agreed upon is 10 perc of the revenues generated from the machines and food, with the estim 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 partur The bill from Party Rentals for the promotional handouts, balloons, de rations, 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-Aron 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 concessione income, record the additional $234 revenue due from the concessionais (Cash was not received.) Required 1. Journalize the transactions. (Start on page 1 of the general journal if using EXCEL el or Working Papers.) 2. Post the transactions to the ledger accounts. (Skip this step if using CLGL.) Check Figure Trial balance total, 6601,941; net income, $16,293; post-closing trial balance total, $569,614 CHAPTER 5: CLOSING ENTRIES AND THE POST-CLOSING TRIAL BALANCE pare a trial balance. (If using a work sheet, use the first two columns.) Data for the adjustments are as follows: Insurance expired during the month, $1,020. h Depreciation of building for the month, $480. Depreciation of pool/slide facility for the month, $675. Depreciation of pool furniture for the month, $220. e. Wages accrued at July 31, $920. Your instructor may want you to use a work sheet for these adjustments. 5. Journalize adjusting entries. Post adjusting entries to the ledger accounts. (Skip this step if using CLGL.) 7. Prepare an adjusted trial balance. 8. Prepare the income statement. 9. Prepare the statement of owner's equity. 10. Prepare the balance sheet. 11. Journalize closing entries. 12. Post closing entries to the ledger accounts. (Skip this step if using CLGL.) 13. Prepare a post-closing trial balance. "If you are using CLGL, use the year 2020 when recording transactions and preparing reports