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 real-life situations. This problem will give you valuable experience.

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 of 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.

Required

1. Journalize the transactions. (Start on page 1 of the general journal if using Excel or Working Papers.)

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2. Post the transactions to the ledger accounts. (Skip this step if using QuickBooks or general ledger.) 

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3. Prepare a trial balance. (If using a work sheet, use the first two columns.) 

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4. Data for the adjustments are as follows:

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a. Insurance expired during the month, $1,000.

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b. Depreciation of pool structure for the month, $715.

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c. Depreciation of fan system for the month, $260.

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d. Depreciation of sailboats for the month, $900.

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e. Wages accrued at June 30, $810.

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Your instructor may want you to use a work sheet for these adjustments.

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5. Journalize adjusting entries.

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6. Post adjusting entries to the ledger accounts. (Skip this step if using QuickBooks or general ledger.)

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7. Prepare an adjusted trial balance.

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8. Prepare the income statement.

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9. Prepare the statement of owner’s equity. (Skip this step if using QuickBooks.)

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10. Prepare the balance sheet.

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11. Journalize closing entries.

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12. Post closing entries to the ledger accounts. (Skip this step if using QuickBooks or general ledger.)

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13. Prepare a post-closing trial balance. (If using QuickBooks, select the trial balance report and modify the report name to Post-Closing Trial Balance.)
 
 
 

Transcribed Image Text:

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, Slide Facility Pool/ 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 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, Slide Facility Pool/ 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