Description
The Super Hero Theme Park was started on January 1 of the current year by Dr. Strange. The following selected events and transactions occurred during January:
1-Jan Jack Strange, the owner, invested $50,000 in the business.
5-Jan Purchased equipment for $100,000 on account from The Gotham Company.
8-Jan Incurred advertising expense of $1,800 on account from Mr. Freeze Agency.
11-Jan Paid salaries to employees, $1,500
12-Jan Paid the cell phone bill, $200.
13-Jan Paid $1,500 for a 1-year insurance policy.
17-Jan Jack Strange withdrew $600 cash for personal use.
20-Jan Received $5,700 in cash for admission fees.
22-Jan Billed corporate customers $3,000 for using the park earlier today.
25-Jan Collected $2,500 from customers in advance of using the park.
30-Jan Paid $700 on account for the advertising incurred back on January 8.
The following accounts are used in the Super Hero Theme Park:
Cash, Accounts Receivable
Prepaid Insurance
Equipment
Accounts Payable
Unearned Admission Revenue
Jack Strange, Capital
Jack Strange, Drawing
Admission Revenue
Advertising Expense
Salaries Expense
Telephone Expense
Complete the following:
- Journalize the January transactions.
- Post transactions to the General Ledger.
- Prepare a Trial Balance.
- Prepare an Income Statement.
- Prepare a Statement of Owner’s Equity.
- Prepare a Balance Sheet.
The journal entries, general ledger, trial balance, income statement, statement of owner's equity, and balance sheet for the Super Hero Theme Park:
Journal Entries
Dr. Strange, Capital
50,000
Cash
50,000
To record the investment of cash by the owner.
Equipment
100,000
Accounts Payable
100,000
To record the purchase of equipment on account.
Advertising Expense
1800
Accounts Payable
1800
To record the advertising expense incurred on account.
Salaries Expense
1500
Cash
1500
To record the payment of salaries to employees.
Telephone Expense
200
Cash
200
To record the payment of the cell phone bill.
Prepaid Insurance
1500
Cash
1500
To record the payment for a 1-year insurance policy.
Jack Strange, Drawing
600
Cash
600
To record the withdrawal of cash for personal use by the owner.
Cash
5700
Admission Revenue
5700
To record the cash received for admission fees.
Accounts Receivable
3000
Admission Revenue
3000
To record the billing of corporate customers for using the park.
Cash
2500
Unearned Admission Revenue
2500
To record the collection of cash from customers in advance of using the park.
Accounts Payable
700
Cash
700
To record the payment on account for advertising expense.
General Ledger
| Debit |
Credit |
| 50,000 |
5700 |
| 3000 |
2500 |
| 600 |
700 |
- Unearned Admission Revenue
Trial Balance
| Account |
Debit |
Credit |
| Cash |
58,300 |
|
| Accounts Receivable |
3000 |
|
| Prepaid Insurance |
1500 |
|
| Equipment |
100,000 |
|
| Accounts Payable |
2800 |
|
| Unearned Admission Revenue |
2500 |
|
| Jack Strange, Capital |
50,000 |
|
| Jack Strange, Drawing |
600 |
|
| Admission Revenue |
8700 |
|