Accounting for Non Accounting Majors

HW Assignment 1

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:

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.