Frontier Park was started on Aprii 1 by C. J. Mendez. The following selected events and...

   

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Frontier Park was started on Aprii 1 by C. J. Mendez. The following selected events and transactions occurred during April. Apr. 1 Mendez invested $40.000 cash in the business. Apr4 Purchased land costing $30.000 for cash. Apr.8 Incurred advertising expense of $1.800 on account. Apr. 11 Paid salaries to employees $1,500. Apr. 12 Hired park manager at a salary of $4,000 per month, effective May 1. Apr. 13 Paid $1,500 cash for a one-year insurance policy. Apr.15 Purchase Park equipment for $ 15000 paying cash. Apr. 17 Withdrew $1.000 cash for personal use. Apr.20 Received $5,700 in cash for admission fees. Apr. 25 Sold 100 coupon books for $25 each. Each book contains 10 coupons that entitle the holder to one admission to the park. Apr.30 Received $8,900 in cash admission fees. Apr.30 Paid $900 on balance owed for advertising incurred on April 8. Mendez uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Admission Revenue, C. J. Mendez, Capital; C. J. Mendez, Drawing: Admission Revenue, Advertising Expense, and Salaries Expense. Instructions 1) Journalize the April transactions. 2) Post them into ledgers. 3) Prepare Trial balance. Question No: 2 (Marks-15) After preparing the trial balance in question no 1, other additional information is also available. a) Salaries unpaid during month $ 700. b) Accrued Admission Revenue unrecorded $ 1000. c) Insurance expired $ 125 for the month. d) Charge depreciation on Park equipment $ 570. e) % of Unearned admission revenue earned during the period. Required: 1) Pass adjusting entries to record additional information. 2) Prepare Worksheet. 3) Pass Closing Entries. 4) Prepare Income Statement, Statement of changes in owner's Equity and classified Balance Sheet. Frontier Park was started on Aprii 1 by C. J. Mendez. The following selected events and transactions occurred during April. Apr. 1 Mendez invested $40.000 cash in the business. Apr4 Purchased land costing $30.000 for cash. Apr.8 Incurred advertising expense of $1.800 on account. Apr. 11 Paid salaries to employees $1,500. Apr. 12 Hired park manager at a salary of $4,000 per month, effective May 1. Apr. 13 Paid $1,500 cash for a one-year insurance policy. Apr.15 Purchase Park equipment for $ 15000 paying cash. Apr. 17 Withdrew $1.000 cash for personal use. Apr.20 Received $5,700 in cash for admission fees. Apr. 25 Sold 100 coupon books for $25 each. Each book contains 10 coupons that entitle the holder to one admission to the park. Apr.30 Received $8,900 in cash admission fees. Apr.30 Paid $900 on balance owed for advertising incurred on April 8. Mendez uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable, Unearned Admission Revenue, C. J. Mendez, Capital; C. J. Mendez, Drawing: Admission Revenue, Advertising Expense, and Salaries Expense. Instructions 1) Journalize the April transactions. 2) Post them into ledgers. 3) Prepare Trial balance. Question No: 2 (Marks-15) After preparing the trial balance in question no 1, other additional information is also available. a) Salaries unpaid during month $ 700. b) Accrued Admission Revenue unrecorded $ 1000. c) Insurance expired $ 125 for the month. d) Charge depreciation on Park equipment $ 570. e) % of Unearned admission revenue earned during the period. Required: 1) Pass adjusting entries to record additional information. 2) Prepare Worksheet. 3) Pass Closing Entries. 4) Prepare Income Statement, Statement of changes in owner's Equity and classified Balance Sheet.

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