July 1 Judar deposited $135,000 in a bank account for the purpose of buying Blast Off! The business is a recreation area offering three large waterslides (called “tubes”)—one children’s slide, an inner tube run, and a looping extreme slide.   2 Bought Blast Off! in its entirety for a total price of $540,800. The assets include pool furniture, $3,800; the pool/slide facility (includes filter system, pools, pump, and slides), $148,800; building, $96,200; and land, $292,000. Paid $120,000 down and signed a mortgage note for the remainder.   2 Received and paid the bill for a one-year premium for insurance, $12,240.   2 Bought 125 inner tubes from Worn Tires for $1,225, paying $500 down, with the remainder due in 20 days.   3 Signed a contract with a video game company to lease space for video games and to provide a food concession. The rental income agreed upon is 10 percent of the revenues generated from the machines and food, with the estimated monthly rental income paid in advance. Received cash payment for July, $250.   5 Received bills totaling $1,320 for the grand opening/Fourth of July party. The bill from Party Rentals for the promotional handouts, balloons, decorations, and prizes was $620, and the newspaper advertising bills from the City Star were $700.   6 Signed a one-year contract for the pool maintenance with All-Around Maintenance and paid the maintenance fee for July of $1,600.   6 Paid cash for employee picnic food and beverages, $128. (Miscellaneous Expense.)   7 Received $12,086 in cash as income for the use of the facilities.   9 Bought parts to repair the filter system on account from Arlen’s Pool Supply, $646.   14 Received $10,445 in cash as income for the use of the facilities.   15 Paid wages to employees for the period ended July 14, $9,460.   16 Paid $1,150 cash as partial payment on account for promotional expenses recorded on July 5. Party Rentals was paid $620 and City Star was paid the remainder of $530.   16 Judar withdrew cash for personal use, $2,500.   17 Bought additional pool furniture from Pool Suppliers for $2,100; payment due in 30 days.   18 Paid cash to seamstress for alterations and repairs to the character costumes, $328. (Miscellaneous Expense.)   21 Received $10,330 in cash as income for the use of the facilities.   21 Paid cash to Worn Tires as partial payment on account, $600.   23 Received a $225 reduction 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 July 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, $360.   31 Received and paid water bill, $684.   31 Paid cash as an installment payment on 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, $942.   31 Bought additional inner tubes from Worn Tires for $480, paying $100 down, with the remainder due in 30 days.   31 Judar withdrew cash for personal use, $3,200.   31 Sales for the video and food concessions amounted to $4,840, and 10 percent of $4,840 equals $484. Because you have already recorded $250 as concessions income, record the additional $234 revenue due from the concessionaire. (Cash was not received.) Required ( Please see images then ) Data for the adjustments are as follows: Insurance expired during the month, $1,020. Depreciation of building for the month, $480. Depreciation of pool/slide facility for the month, $675. Depreciation of pool furniture for the month, $220. Wages accrued at July 31, $920.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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July 1

Judar deposited $135,000 in a bank account for the purpose of buying Blast Off! The business is a recreation area offering three large waterslides (called “tubes”)—one children’s slide, an inner tube run, and a looping extreme slide.

  2

Bought Blast Off! in its entirety for a total price of $540,800. The assets include pool furniture, $3,800; the pool/slide facility (includes filter system, pools, pump, and slides), $148,800; building, $96,200; and land, $292,000. Paid $120,000 down and signed a mortgage note for the remainder.

  2

Received and paid the bill for a one-year premium for insurance, $12,240.

  2

Bought 125 inner tubes from Worn Tires for $1,225, paying $500 down, with the remainder due in 20 days.

  3

Signed a contract with a video game company to lease space for video games and to provide a food concession. The rental income agreed upon is 10 percent of the revenues generated from the machines and food, with the estimated monthly rental income paid in advance. Received cash payment for July, $250.

  5

Received bills totaling $1,320 for the grand opening/Fourth of July party. The bill from Party Rentals for the promotional handouts, balloons, decorations, and prizes was $620, and the newspaper advertising bills from the City Star were $700.

  6

Signed a one-year contract for the pool maintenance with All-Around Maintenance and paid the maintenance fee for July of $1,600.

  6

Paid cash for employee picnic food and beverages, $128. (Miscellaneous Expense.)

  7

Received $12,086 in cash as income for the use of the facilities.

  9

Bought parts to repair the filter system on account from Arlen’s Pool Supply, $646.

  14

Received $10,445 in cash as income for the use of the facilities.

  15

Paid wages to employees for the period ended July 14, $9,460.

  16

Paid $1,150 cash as partial payment on account for promotional expenses recorded on July 5. Party Rentals was paid $620 and City Star was paid the remainder of $530.

  16

Judar withdrew cash for personal use, $2,500.

  17

Bought additional pool furniture from Pool Suppliers for $2,100; payment due in 30 days.

  18

Paid cash to seamstress for alterations and repairs to the character costumes, $328. (Miscellaneous Expense.)

  21

Received $10,330 in cash as income for the use of the facilities.

  21

Paid cash to Worn Tires as partial payment on account, $600.

  23

Received a $225 reduction 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 July 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, $360.

  31

Received and paid water bill, $684.

  31

Paid cash as an installment payment on 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, $942.

  31

Bought additional inner tubes from Worn Tires for $480, paying $100 down, with the remainder due in 30 days.

  31

Judar withdrew cash for personal use, $3,200.

  31

Sales for the video and food concessions amounted to $4,840, and 10 percent of $4,840 equals $484. Because you have already recorded $250 as concessions income, record the additional $234 revenue due from the concessionaire. (Cash was not received.)

Required ( Please see images then )

Data for the adjustments are as follows:

  1. Insurance expired during the month, $1,020.

  2. Depreciation of building for the month, $480.

  3. Depreciation of pool/slide facility for the month, $675.

  4. Depreciation of pool furniture for the month, $220.

  5. Wages accrued at July 31, $920.

Blast Off!
Work Sheet
For the Month Ended July 31, 20--
Trial Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Name
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
Accounts Receivable
Prepaid Insurance
Land
Building
Pool/Slide Facility
Pool Furniture
Accounts Payable
Mortgage Payable
L. Judar, Capital
L. Judar, Drawing
Income from Services
Concessions Income
Pool Maintenance Expense
Wages Expense
Advertising Expense
Utilities Expense
Interest Expense
Miscellaneous Expense
Net Income
Enter as formulas
for this row and
Transcribed Image Text:Blast Off! Work Sheet For the Month Ended July 31, 20-- Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash Accounts Receivable Prepaid Insurance Land Building Pool/Slide Facility Pool Furniture Accounts Payable Mortgage Payable L. Judar, Capital L. Judar, Drawing Income from Services Concessions Income Pool Maintenance Expense Wages Expense Advertising Expense Utilities Expense Interest Expense Miscellaneous Expense Net Income Enter as formulas for this row and
Blast Off!
Income Statement
For the Month Ended July 31, 20--
Revenues:
Total Revenue
Expenses:
Total Expenses
Net Income
Blast Off!
Statement of Owner's Equity
For the Month Ended July 31, 20--
Subtotal
Blast Off!
Balance Sheet
July 31, 20--
Assets
Total Assets
Liabilities
Total Liabilities
Owner's Equity
Total Liahilities and Orner's Fguit
Transcribed Image Text:Blast Off! Income Statement For the Month Ended July 31, 20-- Revenues: Total Revenue Expenses: Total Expenses Net Income Blast Off! Statement of Owner's Equity For the Month Ended July 31, 20-- Subtotal Blast Off! Balance Sheet July 31, 20-- Assets Total Assets Liabilities Total Liabilities Owner's Equity Total Liahilities and Orner's Fguit
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