Accounting Cycle Review: problem A 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 reallife inations. This problem will give you valuable experience. CHART OF ACCOUNTS Asets III Cash 112 Accounts Recivable 114 Prepaid Iosurance 121 Land 122 Dullding 123 Accumulated Depreciation, Bunding 124 Pool/Stide Faclitity 125 Accumalated Depreciation, Pool/ Sinde Facility 126 Pool Furniture 127 Accurrulated Depreciation, Pool Furnitare Labilities 221 Accounts Payable 22. Wages Payable 223 Mortigage Payable Revenue 411 Income from Services 412 Concessions Income Expenses 511 Pool Maintenance Expense 512 Wiges Expense 513 Advertising Expense 514 Utifities Expense 515 Interest Expense 517 Insurance Expense 518 Depreciation Expense, Building 519 Depreciation Expense, Pool/Stide Factity 520. Depreciation Expense, Pool Furniture 522 Miscellaneous Expense Owncr Equity 311 L Jodar, Capital 3/2 L.Judar, Drawing 3)3 Income Summary You are to recond 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 cyde 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 trefactions, pecific instructions for recording them are included. However, feason then out for yourself as well. Check off each transaction as it is recorded. luf I Judar deposited $135,000 in a bank account for the purpose of buying Blast. Offl The basiness is a recreation area offering three large waterslides (called Tubes") - one children's slide, an inner tube run, and a looping extreme slide. 2 Bougbt Blast Offl in its entirety for a total price of $$4,800. The assets include pool furniture, $3,800; the pool/stide facility (includes filter system. pools, pump, and slides), $148,800; bulding, $96,200, and land, $292,000. Pad $120,000 down and signed a mortgage note for the remainder. 2 Received and paid the bill for a oneycar premitum for -intarance. $12,240 (Continice) July 2 Bought 125 innet tabes from Worn Tires for $1.225, paying $500 down, whe the remeinder due in 20 days. 3. Signed a cactract with a video gane company to lease space for video game and to provide a food concesslon. The rental income agreed upon is 10 percest of the revemuer generated from the machines and food, with the estimates monthly rental income paid in advance. Received cash payment for July, $230 5 Received bills totaling $1,320 for the grand opening/Fourth of Jaly parth The bill from Party Rentals for the promotional handouts, balloons, deco rations, and prites was $620, and the newspaper advertising bills from the Oity Star were 5700 6 Signed a one-year contract for the pool maintenance with All-Around Maintenanee and pald the maintenance fee for July of $1.600. 6 Paid cash for employee pictic food and beverages, \$128. (Miscellaneoni Expense) 7 Received 512,056 in cash as income for the use of the ficilities. 9 Bought parts to repair the filter system on account from Arlens Pool Supply, 5646. 14 Received $10,445 in cash as income for the use of the facilities. 15 Paid wages to emplogecs for the period ended Jaly 14, $9,460. 16 Pald $1.150 cash as partial payment on account for promotional expenses recorded an July 5. Party Rentals was puid $620 and City Star was paid the remainder of $530. 16 Judar withdrew cash for perional use, $2,500. 17 Bought additional poot furniture from Pool Suppliers for $2,100; payment due in 30 ditys. 18 Paid cash to seamstress for alterations and repairs to the character costumes, \$328. (Miscellancous Expense) 2) Received $10,330 in cash as incume for the use of the facilities. 21 Paid cash to Worn Tires as partial payment on account, $600. 23 Received a $225 reduetion 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 Jaly 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, 5360. 31 Received and paid water bill, $684. 31 Paid cash as an installment paymenton 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, 5942 31 Bought additional inner tubes from Worn Tires for $480, paying $100 down. with the remainder due in 30 dayx. 31 Judar withdrew cash for personal use, $3,200. income, record the additional $234 revenue due from the concessionaire. (Cash was not received) Chech Flqure that balance total soot loset het inoome, $16,293; postclosing prat balance total 3569.014 Required 1. Journalize the transactions (Sart on page 1 of the general journal if using Excel or Working Paperx) 2. Post the transactions to the ledger accounts. (Skip this step if using CLGL.) 4. horid x edjuoting cusces