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. CLC Chart of Accounts Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance 121 Land 125 Pool Structure 126 Accumulated Depreciation, Pool Structure 127 Fan System 128 Accumulated Depreciation, Fan System 129 Sailboats 130 Accumulated Depreciation, Sailboats Liabilities 221 Accounts Payable 222 Wages Payable 223 Mortgage Payable Owner's Equity 311 R: Cury, Capital 312 R. Cury, Drawing 313 Income Summary Revenue 411 Income from Services 412 Concessions Income Expenses 511 Sailboat Rental Expense 512 Wages Expense 513 Advertising Expense AAA 514 Utilities Expense 515 Interest Expense 516 Insurance Expense 517 Depreciation Expense, Pool Structure 518 Depreciation Expense, Fan System 519 Depreciation Expense, Sailboats 522 Miscellaneous Expense 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 Taccounts or by writing them down on scratch paper. For unfamiliar types of transactions, specific instructions for tecording them are included. However, reason them out for yourself as well. Check off each transaction as it is recorded. June 1 Cury deposited 595,000 in a bank account for the purpose of buying Wind In Your Sails, a business offering the use of small sailboats to the publicat a large indoor pool with a fan system that provides wind. 2 Bought Wind In Your Salls in its entirety for a total price of $216,100. The assets include sailboats, $25,800; fan system, $13,300, pool structure, 5140,000; and land, $37,000. Pald $60,000 down and signed a mortgage note for the remainder 3 Received and paid bill for newspaper advertising, $350 AA 3 Received and paid bill for a one-year premium for insurance, $12,000. 3 Bought additional boats from Louis Manufacturing Co. for $7,200, paying $3,200 down, with the remainder due in 30 days. 3 Signed a contract with a vending machine service to lease space for vending machines. The rental income agreed upon is 10 percent of the sales generated from the machines, with the estimated total rental income payable in advance. Received estimated cash payment for June, $150. 3 Received bill from Quick Printing for promotional handouts, $540. 3 Signed a contract for leasing sailboats from K. Einstein Boat Co. and paid rental fee for June, $700. 5 Paid cash for miscellaneous expenses, $104. 8 Received $2,855 in cash as income for the use of the boats. 9 Bought an addition for the fan system on account from Stark Pool Supply $745. 15 Paid wages to employees for the period ended June 14, $3,900. 16 Paid on account for promotional handouts already recorded on June 3, 5540. 16 Cury withdrew cash for personal use, $2,500. 16 Bought additional sails from Canvas Products, Inc., $850; payment due in 30 days. 16 Received $6,850 in cash as Income for the use of the boats. 19 Paid cash for miscellaneous expenses, $40. 20 Paid cash to Louis Manufacturing Co. as part payment on account, $1.300. 22 Received $8,260 in cash for the use of the boats. 23 Received a reduction in the outstanding bill from Louis Manufacturin) Co. for a boat received in damaged condition, $380. 24 Received and paid telephone bill, $324. 29 Paid wages for period June 15 through 28, $4,973. 30 Paid cash to Stark Pool Supply to apply on account, $475. Dahil AA 30 Received and paid electric bill, $345. 30 Paid cash as an installment payment on the mortgage, $1,848. Or this amount, $497 represents a reduction in the principal and the remainder is interest 30 Received and paid water bill, $590. 30 Bought additional boats from Riddle and Son for $5,320, paying $1,550 down, with the remainder due in 30 days. 30 Cury withdrew cash for personal use, $1,800. 30 Received $5,902 in cash as income for the use of the boats. 30 Sales from vending machines for the month amounted to $1,780. Ten percent of $1,780 equals $178. Because you have already recorded $150 as concessions income, list the additional $28 revenue earned from the vending machine operator (Cash was not received.) Required 1. Journalize the transactions. (Start of the general journal if using Excel or Working Papers.) 2. Post the transactions to the ledger accounts. (Skip this step if using CLGL.) 3. Prepare a trial balance. (If using a work sheet, use the first two columns) 4. Data for the adjustments are as follows: 2. Insurance expired during the month, $1,000 b. Depreciation of pool structure for the month, 5715. c. Depreciation of fan system for the month, $260. c. Depreciation of fan system for the month, $260. d. Depreciation of sailboats for the month, $900. e. Wages accrued at June 30, $810. Your instructor may want you to use a work sheet for these adjustments. 5. Journalize adjusting entries. 6. 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