Assignment: Analyze and interpret a set of financial statements.
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.
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:
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1-Jan
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Jack Strange, the owner, invested $50,000 in the business.
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5-Jan
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Purchased equipment for $100,000 on account from The Gotham Company.
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8-Jan
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Incurred advertising expense of $1,800 on account from Mr. Freeze Agency.
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11-Jan
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Paid salaries to employees, $1,500
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12-Jan
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Paid the cell phone bill, $200.
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13-Jan
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Paid $1,500 for a 1-year insurance policy.
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17-Jan
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Jack Strange withdrew $600 cash for personal use.
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20-Jan
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Received $5,700 in cash for admission fees.
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22-Jan
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Billed corporate customers $3,000 for using the park earlier today.
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25-Jan
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Collected $2,500 from customers in advance of using the park.
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30-Jan
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Paid $700 on account for the advertising incurred back on January 8.
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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.