ACCT 5301Basic Accounting Cycle
Name______
Part 1, General Journal Entries and Adjusting Journal Entries.
The following transactions are for the OldTimes Movie Theater, which began operations on August 1, 2013. Prepare the Journal Entries for OldTimes Movie Theater in the space provided. Refer to the T-accounts inPart 2 for suggested account titles.
8/1: Investors contributed $40,000 cash into the company for common stock.
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8/1: Prepaid the rent on an old theater for two months at a rate of $1,000 per month.
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8/2: OldTimes purchased furnishings costing $35,000 and equipment costing $90,000 by paying cash of $13,000 and issuing a note payable for the balance.
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8/10: OldTimespurchased supplies for the theater costing $5,000 with cash. Use the asset account (Supplies) to record the purchase at this time.
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8/20-31: OldTimessold tickets for movies andreceived net revenues of $5,200 cash.
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8/22: OldTimes rented out the theater for a private party and billed $1,500 for the use (the cash will not be collected until September).
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Party Revenue ______
8/31: OldTimes paid $2,000 cash dividends to its shareholders.
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8/31: OldTimes paid utilities of $500.
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8/31: OldTimes paid salaries of $1,400.
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Adjusting journal entries:
8/31. OldTimes evaluated its supplies, and noted that $600 of supplies had been used during the month.
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8/31. OldTimes received its insurance bill for $900 for August, but will not pay the bill until next month (use Accounts Payable to record the AJE).
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8/31. OldTimes recorded the rent expense for the month of August.
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2. Post the journal entries to T-accounts and find the net debit or credit balance for each account:
Cash Acct. Rec. Supplies Prepaid Rent
Furnishings Equipment Accounts Payable Notes Payable
Common Stock Retained Earnings Dividends Ticket Rev.
Party Rev. Supplies Exp. Utilities Exp. Salaries Exp.
Insurance Exp. Rent Expense
3. From the T-account balances, prepare a Trial Balance for OldTimes:
Debit Credit
Cash______
Accounts Receivable______
Supplies______
Prepaid Rent______
Furnishings______
Equipment______
Accounts Payable______
Notes Payable ______
Common Stock______
Retained Earnings (beginning) -0-
Dividends______
Ticket Revenue______
Party Revenue______
Rent Expense______
Insurance Expense______
Supplies Expense______
Utilities Expense______
Salaries Expense______
Total ______
4. From the trial balance, complete the following financial statements for OldTimes for the month of August.
Income statement
For the Month ending August 31
Ticket Revenue$ ______
PartyRevenue ______
Total Revenues $______
Rent Expense $ ______
Insurance Expense ______
Supplies Expense ______
Utilities Expense ______
Wage & Sal. Expense ______
Total Expenses$ ______
Net income$______
Statement of Stockholders’ Equity
For the Month ending August 31
Common Stock Retained Earnings
Beginning Balance, Oct. 1$ 0 $ 0
Add issue of Common Stock______
Add Net income ______
Less Dividends ( ______)
Ending Balance, Oct. 31$______$______
Balance Sheet at August 31
Assets:Liabilities & SE:
Cash$______Accounts Pay.$______
Accounts Rec. ______Notes Pay. ______
Supplies ______Total Liabilities ______
Prepaid Rent ______Common Stock ______
Furnishings ______Retained Earnings ______
Equipment ______Total Stockholders’ Eq. ______
Total Assets $______Total Liabilities & SE$______