Answer To: The Super Hero Theme Park was started on January 1 of the current year by Dr. Strange. The following...
Nitish Lath answered on Jan 18 2023
IP3 I Do Example
Name
Description:
Expressions was started onDecember 1 of the current year by Worthy. The following selected events and transactions occurred during January:
1-Dec Worthy invested $18,000 cash in Expressions. Asset=Liabilities + Equity
5-Dec Expressions bought $600 for supplies inventory for the shop on account
8-Dec Expressions paid $500 cash to rent space in a strip mall for December.
11-Dec Purchased $1,200 of equipment on credit (recorded as accounts payable).
12-Dec Expressions opened for business on December 5. Cash received from haircutting services in the first week and a half of business (ended December 15) was $825. Chart of Accounts Category Debit Credit
13-Dec Expressions provided $100 of haircutting services on credit. "1" Assets \ + -
17-Dec Expressions received a $100 check for services previously rendered on credit. "2" Liabilities - +
20-Dec Expressions paid $125 cash to an assistant for hours worked for the grand opening. "3" Equity - +
22-Dec Cash received from services provided during the second half of December was $930. "4" revenue - +
25-Dec Expressions paid $400 cash toward the accounts payable from December 5 "5" Expenses + -
30-Dec Worthy made a $900 cash withdrawal from Expressions for personal use.
The following accounts are used in the Super Hero Theme Park:
Number Name
101 Cash
105 Accounts Receivable
109 Shop Supplies Inventory
115 Equipment
201 Accounts Payable
211 Unearned Revenue
301 Worthy, Capital
311 Worthy, Drawing Contra Equity
401 Service Revenue
501 Rent Expense
511 Salaries Expense
521 Telephone Expense
Complete the following:
1. Journalize the January transactions.
2. Post transactions to the General Ledger.
3. Prepare a Trial Balance.
4. Prepare an Income Statement.
5. Prepare a Statement of Owner's Equity.
6. Prepare a Balance Sheet.
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.
Course Objectives:
· Identify and use the sources of accounting data and information.
· Identify the users of financial accounting information and the types of decisions made by users.
Model Answer:
General Journal
20XX Page G1
Date Account Titles and Explanations PR Debit Credit
1-Dec Cash 101 18,000
Capital 301 18,000
5 Shop Supply Inventory 109 600
Accounts Payable 201 600
8 Rent Expense 500
Cash 500
11 Equipment 1,200
Accounts Payable 1,200
12 Cash 825
Services Revenue 825
13 Accounts Receivable 100
Servicese Revenue 100
17 Cash 100
Accounts Receivable 100
20 Salary Expense 125
Cash 125
22 Cash 930
Services Revenue 930
25 Accounts Payable 400
Cash 400
30 Withdrawal 900
Cash' 900
** Do EITHER the Ledgers OR T Accounts
Ledgers T Accounts
Cash Act. #101 Cash 101
Date Item (leave blank) PR Debit Credit Balance 18,000 500
1-Dec G1 18,000 18,000 825 125
8-Dec G1 500 17,500 100 400
12-Dec G1 825 18,325 930 900
17-Dec G1 100 18,425
20-Dec G1 125 18,300 19855 DR
22-Dec G1 930 19,230 1925 CR
25-Dec G1 400 18,830 17930
30-Dec G1 900 17,930 17,930
Accounts Receivable Act. #105 AR 105
Date PR Debit Credit Balance 100 100
13-Dec G1 100 100
17-Dec 100 0 - 0
Shop Supplies Inventory Act. #109 Supply Inventory 109
Date PR Debit Credit Balance 600
5-Dec G1 600 600
600
Equipment Act. #115 Equipment 115
Date PR Debit Credit Balance 1,200
11-Dec G1 1200 1,200
1,200
Accounts Payable Act. #201 AP 201
Date PR Debit Credit Balance 400 600
5-Dec G1 600 600 1,200
11-Dec G1 1,200 1,800
25-Dec G1 400 1,400 1,400
Unearned Revenue Act. #211 Unearned 211
Date PR Debit Credit Balance
G1
Worthy, Capital Act. #301 Capital 301
Date PR Debit Credit Balance 18,000
1-Dec G1 18,000 18,000
18,000
Worthy, Drawing Act. #311 Drawing 311
Date PR Debit Credit Balance 900
G1 900 900
900
Services Revenue Act. #401 Revenue 401
Date PR Debit Credit Balance 100
13-Dec G1 100 100 825
12-Dec 825 925 930
22-Dec G1 930 1,855 1,855
12-Dec
Rent Expense Act. #501
Date PR Debit Credit Balance Rent 501
8-Dec G1 500 500 500
500
Salaries Expense Act. #511
Date PR Debit Credit Balance Salary Exp 511
20-Dec G1 125 125 125
125
Telephone Expense Act. #521
Date PR Debit Credit Balance Tele Exp 521
G1
Trial Balance
Expressions
Trial Balance
December 31, 20XX
Account Titles Act. # Debit Credit
Cash 101 $17,930
Accounts Receivable 105 0
Shop Supplies 109 600
Equipment 115 1,200
Accounts Payable 201 $1,400
Unearned Revenue 211
Worthy, Capital 301 18,000
Worthy, Drawing 311 900
Service Revenue 401 1,855 100
Rent Expense 501 500 10
Salaries Expense 511 125 90
Telephone Expense 521
$21,255 $21,255 Must Balance
$0
Income Statement:
Expressions
Income Statement
For the month ended December 31, 20XX
Revenue:
Service Revenue
$1,855
Expenses:
Rent Expense $500
Salary Expense 125
Total Expenses 625
Net Income $1,230
Statement of Owner's Equity:
Essentials
Statement of Owner's Equity
For the month ended December 31, 20XX
Worthy, Capital 12/1/XX $18,000
Add: Net Income 1,230
Subtotal...