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, investe

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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.