Question
You are the owner/operator of a youth sports complex. As of February 28, 2017, the businesses trial balance contained the following accounts and balances. All
You are the owner/operator of a youth sports complex. As of February 28, 2017, the businesses trial balance contained the following accounts and balances. All accounts have normal debit/credit balances.
Accounts Payable | 300.00 |
Accumulated Depreciation | 5,000.00 |
Building | 95,000.00 |
Cash | 5,600.00 |
Concessions Inventory | 500.00 |
Concessions Revenues | 8,800.00 |
Depreciation | 500.00 |
Equipment | 5,000.00 |
Food Expenses (Cost of Goods Sold) | 6,600.00 |
Insurance Expense | 400.00 |
Interest Expense | 450.00 |
Land | 30,000.00 |
Note Payable to Bank | 120,000.00 |
Prepaid Insurance | 800.00 |
Retained Earnings | 7,350.00 |
Team Registration Income | 6,000.00 |
Umpires Expense | 2,000.00 |
Unearned Registration Fees | 700.00 |
Utilities Expense | 500.00 |
Wages Expense | 800.00 |
The sports complex hosts a tournament on March 25. Journal entries are recorded to reflect the activities of the tournament in the financial statements with the debts listed first and the credits following.
For the tournament, the complex had a concession stand. Food was purchased on account at a cost of $3,000. At the end of the tournament, $800 of inventory remained on hand. (Hint: take into account that there was beginning concessions inventory at March 1.) Sales revenues of $3,800 were collected from the sales.
Concessions Inventory | 3,000 |
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Cash | 3,800 |
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Food Expense | 2,700 |
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| Accounts Payable | 3,000 | ||
| Concession Revenue | 3,800 | ||
| Concession Inventory | 2,700 | ||
10 teams participated in the tournament. Registration fees were $350 per team. Two of the teams had registered and paid in February 2017 (Hint: see unearned registration fees). The remaining eight teams paid during March 2017.
Cash | 2,800 |
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Unearned Registration Fees | 700 |
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| Team Registration Income | 3,500 | ||
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Officials were hired to officiate the tournament games. Four officials were hired, at a cost of $250 each. Three of the officials were paid the day of the tournament, but the fourth left before he could be paid. As of March 31, 2017, he had not been paid.
Umpire Expense | 1,000 |
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| Cash | 750 | ||
| Umpire Expense Payable | 250 | ||
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The monthly payment on the bank loan was paid. The total payment was $1000, with $800 reducing the principal and $200 paying the interest.
Interest Expense | 200 |
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Note Payable to Bank | 800 |
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| Cash | 1,000 | ||
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Beginning accounts payable at March 1 included Februarys utility bills ($300). The utility bills were paid in March. Marchs utility bills totaling $175 were also received and paid in March.
Utilities Expense | 175 |
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Accounts Payable | 300 |
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| Cash | 475 | ||
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Prepare a balance sheet as of March 31, 2017 and an income statement for all income for 2017 (January March). Classifying the accounts on the proper statement and in the proper sections (assets/liabilities/equity/revenues/expenses) will be the primary criteria
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