Let's Dance Corporation for ton JE. Chart of Accounts Ledger # Ledger # Account ASSETS Cash Short-term Investments Accounts Receivable Office Supplies Prepaid Insurance Prepaid Advertising Building Accum Depr.- Building Dance Equipment Accum Depr. - Dance Equip. 101 102 103 104 105 106 Account LIABILITIES Accounts Payable Notes Payable Interest Payable Salaries Payable Unearned Revenue 201 202 203 204 205 107 108 109 110 OWNER'S EQUITY Common Stock Retained Earnings Income Summary 301 302 303 REVENUES Admission Revenues Dance Lesson Revenues 401 402 EXPENSES Salaries Expense Interest Expense Depr. Exp. - Building Depr. Exp. - Dance Equip. Advertising Expense Legal Expense Supplies Expense Insurance Expense 501 502 503 504 505 506 507 508 1 2. 3. 4. 6. Let's Dance Corporation Dransactions for On December 1", you and your friends invest $300,000 into the company in exchange for Let's Dance common stock. DL Cast 300,000 &ct. Common Stock 300_000 On December 1", you and your friends buy a building with an expected life of 40 years for $180,000. Your company uses straight-line depreciation On December 1", you and your friends purchase $72,000 worth of dance equipment on account from Dancer's Unlimited. The equipment has an expected life of 12 years. On December 1", you and your friends purchase prepaid insurance for a year for $1,200. 5. On December 1", you and your friends borrow $120,000 from the bank. The loan is due ! year from now and carries an interest rate of 6 percent. On December 3". Let's Dance opens for business! On that day 100 people show up and pay the $50 admission fee to dance on your spectacular floor! 7 On December 5", you realize that you need some office supplies, therefore, you go out and purchase $500 worth of supplies on account from the local office superstore. On December 7, you hire Whitney to give private dance lessons to your patrons. Two of your patrons pay $400 each in advance for lessons to be given on December 12. On December 12, Whitney gives private dance lessons to one of the patrons that paid in advance. The other patron is unable to attend and reschedules his dance lesson for January 12, next year. You owe Whitney $100 for giving the lesson. 10. On December 15, 500 people show up to dance on that spectacular floor. The admission fee is $40 per person. 100 of them ask to put the $40 on their account 11. On December 18, you pay Whitney's salary of $100. 12. December 20th is "Senior Citizens Day." Seniors get to dance on your spectacular floor for only $30. 400 seniors attend that day and pay cash. 13. On that same day (December 20"), several seniors got into a brawl and were injured. Police had to be called. Twenty-five seniors were arrested & Let's Dance was fined $2,000 for their handling of the situation. You paid the fine that day, 14. On December 23, you decide to start advertising since the seniors gave Let's Dance a bad reputation. Therefore, you prepay $1.000 for advertisino for 2 month 8. 9. 15. On December 25, you notice that you have $75,000 sitting around; therefore, you decide to pay off $50,000 of your accounts payable from Dancer's Unlimited and invest $25,000 in short-term investments. 16. On December 30th, 1,000 people show up to dance on your floor. The fee is $60 that night. All pay cash! Adjustments On December 31", you notice the following: JE, post ledger. a) You have used up $150 of your supplies b) You have used up $100 of your insurance c) You have used up $125 of your advertising d) You have accumulated $600 interest on the note payable ($120,000 * 6% * 1/12) e) You have accumulated $375 depreciation on the building [($180,000/ 40) * 1/12] f) You have accumulated $500 depreciation on the dancing equip. [($72,000/12) * 1/12] g) You have accrued salaries of $1,000 The Accounting Cycle l-lb -Sakai posted Analyze business transactions Journalize the transactions V DRICR. 3. Post to ledger accounts T ACCOUNT -4. Prepare a trial balance 5 Journalize and post adjusting entries A-G 6. Prepare an adjusted trial balance 1. Prepare the financial statements (VS, Stmt of Re, BS), SE JE JE [8 Journalize and post closing entries Rev, Exp, Div. 9. Prepare a post-closing trial balance A, L, E (BIS) Let's Dance Corporation for ton JE. Chart of Accounts Ledger # Ledger # Account ASSETS Cash Short-term Investments Accounts Receivable Office Supplies Prepaid Insurance Prepaid Advertising Building Accum Depr.- Building Dance Equipment Accum Depr. - Dance Equip. 101 102 103 104 105 106 Account LIABILITIES Accounts Payable Notes Payable Interest Payable Salaries Payable Unearned Revenue 201 202 203 204 205 107 108 109 110 OWNER'S EQUITY Common Stock Retained Earnings Income Summary 301 302 303 REVENUES Admission Revenues Dance Lesson Revenues 401 402 EXPENSES Salaries Expense Interest Expense Depr. Exp. - Building Depr. Exp. - Dance Equip. Advertising Expense Legal Expense Supplies Expense Insurance Expense 501 502 503 504 505 506 507 508 1 2. 3. 4. 6. Let's Dance Corporation Dransactions for On December 1", you and your friends invest $300,000 into the company in exchange for Let's Dance common stock. DL Cast 300,000 &ct. Common Stock 300_000 On December 1", you and your friends buy a building with an expected life of 40 years for $180,000. Your company uses straight-line depreciation On December 1", you and your friends purchase $72,000 worth of dance equipment on account from Dancer's Unlimited. The equipment has an expected life of 12 years. On December 1", you and your friends purchase prepaid insurance for a year for $1,200. 5. On December 1", you and your friends borrow $120,000 from the bank. The loan is due ! year from now and carries an interest rate of 6 percent. On December 3". Let's Dance opens for business! On that day 100 people show up and pay the $50 admission fee to dance on your spectacular floor! 7 On December 5", you realize that you need some office supplies, therefore, you go out and purchase $500 worth of supplies on account from the local office superstore. On December 7, you hire Whitney to give private dance lessons to your patrons. Two of your patrons pay $400 each in advance for lessons to be given on December 12. On December 12, Whitney gives private dance lessons to one of the patrons that paid in advance. The other patron is unable to attend and reschedules his dance lesson for January 12, next year. You owe Whitney $100 for giving the lesson. 10. On December 15, 500 people show up to dance on that spectacular floor. The admission fee is $40 per person. 100 of them ask to put the $40 on their account 11. On December 18, you pay Whitney's salary of $100. 12. December 20th is "Senior Citizens Day." Seniors get to dance on your spectacular floor for only $30. 400 seniors attend that day and pay cash. 13. On that same day (December 20"), several seniors got into a brawl and were injured. Police had to be called. Twenty-five seniors were arrested & Let's Dance was fined $2,000 for their handling of the situation. You paid the fine that day, 14. On December 23, you decide to start advertising since the seniors gave Let's Dance a bad reputation. Therefore, you prepay $1.000 for advertisino for 2 month 8. 9. 15. On December 25, you notice that you have $75,000 sitting around; therefore, you decide to pay off $50,000 of your accounts payable from Dancer's Unlimited and invest $25,000 in short-term investments. 16. On December 30th, 1,000 people show up to dance on your floor. The fee is $60 that night. All pay cash! Adjustments On December 31", you notice the following: JE, post ledger. a) You have used up $150 of your supplies b) You have used up $100 of your insurance c) You have used up $125 of your advertising d) You have accumulated $600 interest on the note payable ($120,000 * 6% * 1/12) e) You have accumulated $375 depreciation on the building [($180,000/ 40) * 1/12] f) You have accumulated $500 depreciation on the dancing equip. [($72,000/12) * 1/12] g) You have accrued salaries of $1,000 The Accounting Cycle l-lb -Sakai posted Analyze business transactions Journalize the transactions V DRICR. 3. Post to ledger accounts T ACCOUNT -4. Prepare a trial balance 5 Journalize and post adjusting entries A-G 6. Prepare an adjusted trial balance 1. Prepare the financial statements (VS, Stmt of Re, BS), SE JE JE [8 Journalize and post closing entries Rev, Exp, Div. 9. Prepare a post-closing trial balance A, L, E (BIS)