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Unformatted text preview: pa ya ble Debit
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 Explanation: a. To rec ord in...
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