The Super Hero Theme Park was started on January 1 of the current year by Dr. Strange. The following selected events and transactions occurred during January: 1-Jan Jack Strange, the owner, investe

The Super Hero Theme Park was started on January 1 of the current year by Dr. Strange. The following selected events and transactions occurred during January: 

1-Jan

Jack Strange, the owner, invested $50,000 in the business.

5-Jan

Purchased equipment for $100,000 on account from The Gotham Company.

8-Jan

Incurred advertising expense of $1,800 on account from Mr. Freeze Agency.

11-Jan

Paid salaries to employees, $1,500     

12-Jan

Paid the cell phone bill, $200.

13-Jan

Paid $1,500 for a 1-year insurance policy.

17-Jan

Jack Strange withdrew $600 cash for personal use.

20-Jan

Received $5,700 in cash for admission fees.

22-Jan

Billed corporate customers $3,000 for using the park earlier today.

25-Jan

Collected $2,500 from customers in advance of using the park.

30-Jan

Paid $700 on account for the advertising incurred back on January 8.

The following accounts are used in the Super Hero Theme Park: 

  • Cash, Accounts Receivable
  • Prepaid Insurance
  • Equipment
  • Accounts Payable
  • Unearned Admission Revenue
  • Jack Strange, Capital
  • Jack Strange, Drawing
  • Admission Revenue
  • Advertising Expense
  • Salaries Expense
  • 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.

Expert Solution Preview

Introduction:
The Super Hero Theme Park was started by Dr. Strange on January 1 of the current year. This assignment requires us to journalize the transactions that occurred during January, post them to the general ledger, prepare a trial balance, income statement, statement of owner’s equity, and balance sheet.

1. Journalize the January transactions:
Jan 1: Cash $50,000, Jack Strange, Capital $50,000
Jan 5: Equipment $100,000, Accounts Payable $100,000
Jan 8: Advertising Expense $1,800, Accounts Payable $1,800
Jan 11: Salaries Expense $1,500, Cash $1,500
Jan 12: Telephone Expense $200, Cash $200
Jan 13: Prepaid Insurance $1,500, Cash $1,500
Jan 17: Jack Strange, Drawing $600, Cash $600
Jan 20: Cash $5,700, Admission Revenue $5,700
Jan 22: Accounts Receivable $3,000, Unearned Admission Revenue $3,000
Jan 25: Cash $2,500, Unearned Admission Revenue $2,500
Jan 30: Advertising Expense $700, Accounts Payable $700

2. Post transactions to the General Ledger:

| Account Name | Debit | Credit |
|———————-|————–|—————|
| Cash | 65,800 | |
| Accounts Receivable | | 3,000 |
| Prepaid Insurance | 1,500 | |
| Equipment | | 100,000 |
| Accounts Payable | 100,000 | 700 |
| Unearned Admission Revenue| 5,000 | 2,500 |
| Jack Strange, Capital | 50,000 | |
| Jack Strange, Drawing| 600 | |
| Admission Revenue | | 5,700 |
| Advertising Expense | 2,500 | |
| Salaries Expense | 1,500 | |
| Telephone Expense | 200 | |

3. Prepare a Trial Balance:

| Account Name | Debit | Credit |
|———————-|————–|—————|
| Cash | 65,800 | |
| Accounts Receivable | | 3,000 |
| Prepaid Insurance | 1,500 | |
| Equipment | | 100,000 |
| Accounts Payable | 100,000 | 700 |
| Unearned Admission Revenue| 5,000 | 2,500 |
| Jack Strange, Capital | 50,000 | |
| Jack Strange, Drawing| 600 | |
| Admission Revenue | | 5,700 |
| Advertising Expense | 2,500 | |
| Salaries Expense | 1,500 | |
| Telephone Expense | 200 | |
| Total | 126,100 | 111,900 |

4. Prepare an Income Statement:

| Account Name | Amount |
|———————-|————–|
| Admission Revenue | 5,700 |
| Total Revenue | 5,700 |
| Advertising Expense | 2,500 |
| Salaries Expense | 1,500 |
| Telephone Expense | 200 |
| Total Expenses | 4,200 |
| Net Income | 1,500 |

5. Prepare a Statement of Owner’s Equity:

| Account Name | Amount |
|———————-|————–|
| Jack Strange, Capital | 50,000 |
| Net Income | 1,500 |
| Jack Strange, Drawing| 600 |
| Total | 48,900 |

6. Prepare a Balance Sheet:

| Account Name | Amount |
|———————-|————–|
| Cash | 65,800 |
| Accounts Receivable | 3,000 |
| Prepaid Insurance | 1,500 |
| Equipment | 100,000 |
| Total Assets | 170,300 |
| Accounts Payable | 100,700 |
| Unearned Admission Revenue| 2,500 |
| Jack Strange, Capital | 50,000 |
| Total Liabilities and Equity| 170,300|

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

HCM Saudi Electronic University Health Sector Transformation Program Discussion

Key objective 2 in the Health Sector Transformation Program within Saudi Vision 2030 is improving the quality and efficiency of health services. Discuss two healthcare quality improvements that have been achieved under the Health Sector Transformation program. Be sure to reference how these improvements were measured. Discuss how key objective

HCM Saudi Electronic University Health Sector Transformation Discussion

The goal of the Health Sector Transformation Program is to reorganize Saudi Arabia’s health sector so that it is a complete, effective, and integrated health system based on the health of the individual and society (including the citizen, the resident and the visitor). The Program is based on the idea

Saudi Electronic University Health Sector Transformation Program Discussion

Key objective 2 in the Health Sector Transformation Program within Saudi Vision 2030 is improving the quality and efficiency of health services. Discuss two healthcare quality improvements that have been achieved under the Health Sector Transformation program. Be sure to reference how these improvements were measured. Discuss how key objective

Saudi Electronic University Health Services & Financial Management Discussion

Unique Aspects of Health Services & Financial Management There are a number of unique factors relating to the health services sector: Compare the two types of accounting functions. Describe how the accounting functions affect operational oversight. How do these unique features affect the financial management of the sector? Expert Solution

discsstion 1

Key objective 2 in the Health Sector Transformation Program within Saudi Vision 2030 is improving the quality and efficiency of health services. Discuss two healthcare quality improvements that have been achieved under the Health Sector Transformation program. Be sure to reference how these improvements were measured. Discuss how key objective

discuustion 2

I’m working on a public health discussion question and need the explanation and answer to help me learn. Key objective 2 in the Health Sector Transformation Program within Saudi Vision 2030 is improving the quality and efficiency of health services. Discuss two healthcare quality improvements that have been achieved under

SEU Entities Involved in Healthcare Privatization Discussion Response

I need reply for this: The goal of the Health Sector Transformation Program is to reorganize Saudi Arabia’s health sector so that it is a complete, effective, and integrated health system based on the health of the individual and society (including the citizen, the resident and the visitor). The Program

SEU Health Sector Transformation Program Discussion Response

I need reply for this: Health Sector Transformation program in Saudi Vision 2030 COLLAPSE Introduction        The Saudi Vision 2030’s Health Sector Transformation Program aims to raise healthcare quality in Saudi Arabia. The initiative has improved healthcare quality in several ways, such as by developing telemedicine services. This paper will discuss

SEU Using the Gestation Demographics SEU Dataset Project

Using the Gestation Demographics SEU dataset that is located in the tabs at the bottom of the Framingham dataset provided, perform the following problems using R Studio or Excel.Create a simple distribution graph (histogram) where we will explore the age of women after giving birth to their first child. Remember

Using the Gestation Demographics SEU datase

This week we are learning about ordinal/categorical, continuous, and dichotomous variables. Using the Gestation Demographics SEU dataset that is located in the tabs at the bottom of the Framingham dataset provided, perform the following problems using R Studio or Excel. Create a simple distribution graph (histogram) where we will explore

Policy and Supply and Demand ppt

Policy and Supply and Demand (125 Points) Various programs to increase employment in the healthcare sector have recently been introduced in the Kingdom of Saudi Arabia. As a result, an increasing number of foreigners have been provided with the opportunity work in the Kingdom. Studies show that 30% of the

reply f 1

Under the Health Sector Transformation Program within Saudi Vision 2030, improving the quality and efficiency of health services is a crucial objective. The program aims to improve healthcare quality by enhancing access to healthcare services, enhancing healthcare financing, improving healthcare governance and management, and increasing healthcare workforce capacity (Ministry of

BMI 502 SIU Impact of Telemedicine in Bowel Disease Literature Review

Literature review article  Topic: Impact of Telemedicine in Inflammatory Bowel Disease  citations using endnote ; paper should contain headings: abstract, introduction, literature review, methodology, discussion and conclusion Expert Solution Preview Introduction: Telemedicine has emerged as a beneficial tool in various fields of medicine. The focus of this literature review article

reply f 2

Health Services and Financial Management  Health services and financial management are two distinct yet overlapping fields of expertise. Health services involve delivering medical services and treatments to maintain or improve a person’s health. At the same time, financial management is the process of identifying, monitoring, and controlling the use of

reply for this

Health Sector Transformation program in Saudi Vision 2030 COLLAPSE Introduction  The Saudi Vision 2030’s Health Sector Transformation Program aims to raise healthcare quality in Saudi Arabia. The initiative has improved healthcare quality in several ways, such as by developing telemedicine services. This paper will discuss two healthcare quality improvements made

reply 4 f

Financial management in any sector include the managing of regular monetary activities including contract negotiations, cash availability for expenses like payroll, and emergency fund maintenance. Financial management at the executive level entails sharing data with the other members of the leadership team so that they may formulate long-term strategies. Large