May 1 pre pa id re nt ca sh 180000 180000 may 31 re

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Unformatted text preview: pa ya ble Debit 300,000 Credit 300,000 May 31 Inte re st e x pe nse Inte re st pa ya ble 3,000 3,000 b. May 1 Pre pa id re nt Ca sh 180,000 180,000 May 31 Re nt e x pe nse Pre pa id re nt 30,000 30,000 c . May 2 Ca sh Une a rne d a dm issions re ve nue 910,000 May 31 Une a rne d a dm issions re ve nue Adm issions Re ve nue 260,000 910,000 260,000 d. May 4 No journa l e ntry re quire d No journa l e ntry re quire d 0 0 W orksheet Learning Objective: 04-03 Prepare adjus ting entries to convert as s ets to expens es . Learning Objective: 04-06 Prepare adjus ting entries to accrue uncollected revenue. Learning Objective: 04-01 Explain the purpos e of adjus ting entries . Learning Objective: 04-04 Prepare adjus ting entries to convert liabilities to revenue. Learning Objective: 04-07 Explain how the principles of realization and m atching relate to adjus ting entries . Learning Objective: 04-02 Des cribe and prepare the four bas ic types of adjus ting entries . Learning Objective: 04-05 Prepare adjus ting entries to accrue unpaid expens es . Learning Objective: 04-09 Prepare an adjus ted trial balance and des cribe its purpos e. Among the ledger ac c ounts us ed by Glenwood Speedway are the following: Prepaid Rent, Rent Ex pens e, Unearned Admis s ions Revenue, Admis s ions Revenue, Prepaid Printing, Printing Ex pens e, Conc es s ions Rec eivable, and Conc es s ions Revenue. For eac h of the following items , provide the journal entry (if one is needed) to rec ord the initial trans ac tion and provide the adjus ting entry , if any , required on May 31, the end of the fis c al y ear. a . On May 1, borrowed $300,000 c as h from National Bank by is s uing a 12 perc ent note pay able due in three months . b. On May 1, paid rent for s ix months beginning May 1 at $30,000 per month. c. On May 2, s old s eas on tic k ets for a total of $910,000 c as h. The s eas on inc ludes 70 rac ing day s : 20 in May , 25 in June, and 25 in July . d. On May 4, an agreement was reac hed with Snac k -Bars , Inc ., allowing that c ompany to s ell refres hments at the trac k in return for 10 perc ent of the gros s rec eipts from refres hment s ales . (In ca se s w he re no e ntry is re quire d, ple a se se le ct the option "No journa l e ntry re quire d" for your a nsw e rs to gra de corre ctly. Le a ve no ce lls bla nk - be ce rta in to e nte r "0" w he re ve r re quire d. Round your a nsw e rs to the ne a re st w hole dolla r. Om it the "$" sign in your re sponse .) Date General Journal http://ezto.mhecloud.mcg r aw- hill.com/hm_accounting .tpx?todo= pr intview Debit Credit 9/16 1/23/2014 Assig nment Pr int View a. May 1 Cas h 300,000 Notes pay able May 31 Interes t ex pens e 300,000 3,000 Interes t pay able b. May 1 Prepaid rent 3,000 180,000 Cas h May 31 Rent ex pens e 180,000 30,000 Prepaid rent c . May 2 Cas h 30,000 910,000 Unearned admis s ions revenue May 31 Unearned admis s ions revenue 910,000 260,000 Admis s ions Revenue d. May 4 No journal entry required No journal entry required 260,000 0 0 Explanation: a. To rec ord in...
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