Chart of Accounts Assets 111 Cash 112 Accounts Receivable 114 Prepaid Insurance
ID: 2525523 • Letter: C
Question
Chart of Accounts
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
Liabilities
221 Accounts Payable
222 Wages Payable
223 Mortgage Payable
Owner's Equity
311 L. Judar, Capital
312 L. Judar, Drawing
313 Income Summary
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
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 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.
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 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.
5 Received bills totaling $1,320 for the grand opening/Fourth of July party. The bill from
Party Rentals for the promotional handouts, balloons, decorations, and prizes was $620,
and the newspaper advertising bills from the City Star were $700. (These expenses
should all be considered advertising expense.)
6 Signed a one-year contract for the pool maintenance with All-Around Maintenance and
paid the maintenance fee for July of $1,600.
6 Paid cash for employee picnic food and beverages, $128. (Debit Miscellaneous Expense.)
7 Received $12,086 in cash as income for the use of the facilities.
9 Bought parts for the filter system on account from Arlen's Pool Supply, $646. (Debit Pool
Maintenance Expense.)
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 cash as partial payment on account for promotional expenses recorded on July 5,
$1,150.
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. (Debit
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 concessions income, record the
additional $234 revenue due from the concessionaire. (Cash was not received.)
Required
1. Journalize the transactions, starting on page 1 of the general journal.
2. Post the transactions to the ledger accounts.
3. Prepare a trial balance in the first two columns of the work sheet.
Check Figure
Trial balance total, $601,941
Explanation / Answer
BLAST OFF General journal for the month ending July 31 Date Account Title Debit Credit July.1 Cash 1350000 L.Judar, Capital 135000 July.2 Pool Furniture 3800 Pool/Slide facility 148800 Building 96200 Land 292000 Cash 120000 Mortgage Payable 420800 July.2 Prepaid Insurance 12240 Cash 12240 July.3 Pool Furniture 1225 Cash 500 Accounts Payable 725 July.3 Cash 250 Concessional income 250 July.5 Advertising Expense 1320 Accounts Payable 1320 July.6 Pool Maintenance Expense 1600 Cash 1600 July.6 Miscellaneous Expense 128 Cash 128 July.7 Cash 12086 Income from services 12086 July.9 Pool Maintenance Expense 646 Accounts Payable 646 July.14 Cash 10445 Income from services 10445 July.15 Wages Expense 9460 Cash 9460 July.16 Accounts Payable 1150 Cash 1150 July.16 L.Judar, Drawings 2500 Cash 2500 July.17 Pool Furniture 2100 Accounts Payable 2100 July.18 Miscellaneous Expense 328 Cash 328 July.21 Cash 10330 Income from services 10330 July.21 Accounts Payable 600 Cash 600 July.23 Accounts Payable 225 Pool Furniture 225 July.25 Utilities Expense 292 Cash 292 July.29 Wages Expense 8227 Cash 8227 July.31 Cash 11870 Income from services 11870 July.31 Accounts Payable 360 Cash 360 July.31 Utilities Expense 684 Cash 684 July.31 Mortgage Payable 1910 Interest Expense 1980 Cash 3890 July.31 Utilities Expense 942 Cash 942 July.31 Pool Furniture 480 Cash 100 Accounts Payable 380 July.31 L.Judar, Drawings 3200 Cash 3200 July.31 AccountsReceivable 234 Concessional income 234 Cash Accounts Receivable Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit July.1 135000 135000 July.31 234 234 July.2 120000 15000 234 July.2 12240 2760 234 July.2 500 2260 234 July.3 250 2510 July.6 1600 910 Prepaid Insurance July.6 128 782 Balance July.7 12086 12868 Date Debit Creidt Debit Credit July.14 10445 23313 July.2 12240 12240 July.15 9460 13853 12240 July.16 1150 12703 July.16 2500 10203 Building July.18 328 9875 Balance July.21 10330 20205 Date Debit Creidt Debit Credit July.21 600 19605 July.2 96200 96200 July.25 292 19313 96200 July.29 8227 11086 July.31 11870 22956 July.31 360 22596 July.31 684 21912 July.31 3890 18022 July.31 942 17080 Land July.31 100 16980 Balance July.31 3200 13780 Date Debit Creidt Debit Credit July.31 13780 July.2 292000 292000 Pool / Slide Facility Balance Accumulated Depreciation - Building Date Debit Creidt Debit Credit Balance July.2 148800 148800 Date Debit Creidt Debit Credit 148800 0 148800 0 148800 Acumulated Depreciation - Pool / Slide Facility Pool furniture Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit 0 July.2 3800 3800 0 July.2 1225 5025 0 July.17 2100 7125 0 July.23 225 6900 July.31 480 7380 Acumulated Depreciation - Pool Furniture Accounts Payable Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit 0 July.2 725 725 0 July.5 1320 2045 0 July.9 646 2691 0 July.16 1150 1541 July.17 2100 3641 July.21 600 3041 July.23 225 2816 July.31 360 2456 Wages Payable July.31 380 2836 Balance Date Debit Creidt Debit Credit Mortgage Payable 0 Balance 0 Date Debit Creidt Debit Credit 0 July.2 420800 420800 0 July.31 1910 418890 L.Judar, Capital L.Judar, Drawings Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit July.1 135000 135000 July.16 2500 2500 135000 July.31 3200 5700 135000 5700 135000 5700 Income Summary Income from services Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit 0 July.7 12086 12086 0 July.14 10445 22531 0 July.21 10330 32861 0 July.31 11870 44731 Concession income Pool Maintennce Expense Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit July.3 250 250 July.6 1600 1600 July.31 234 484 July.7 646 2246 484 2246 484 2246 Wages Expense Advertising Expense Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit July.15 9460 9460 July.5 1320 1320 July.29 8227 17687 1320 17687 1320 17687 1320 Utilities Expense Interest Expense Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit July.25 292 292 July.31 1980 1980 July.31 684 976 1980 July.31 942 1918 1980 1918 1980 Insurance Expense Depreciation Expense - Building Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit 0 0 0 0 0 0 0 0 Depreciation Expense - Pool/Slide Facility Depreciation Expense - Pool furniture Balance Balance Date Debit Creidt Debit Credit Date Debit Creidt Debit Credit 0 0 0 0 0 0 0 0 Miscellaneous Expense Balance Date Debit Creidt Debit Credit July.6 128 128 July.18 328 456 456 456 BLAST OFF Unadjusted Trial Balance as at July 31 Account Title Debit credit Cash 13780 Accounts Receivable 234 Prepaid Insurance 12240 Land 292000 Building 96200 Acc.Depr. - Building Pool/Slide Facility 148800 Acc.Depr. - Pool/Slide facility Pool Furniture 7380 Acc. Dep - Pool Furniture Accounts Payable 2836 Wages Payable Mortgage Payable 418890 L.Judar, Capital 135000 L.Judar, Drawings 5700 Income from services 44731 Concessional income 484 Pool Maintenance Expense 2246 Wages Expense 17687 Advertising Expense 1320 Utilitiies Expense 1918 Interest Expense 1980 Miscellaneous Expense 456 Total 601941 601941