Great Adventures, Inc.

Journal Entries:
Date

August

Transaction

1 Cash
Notes Payable

(Obtain loan from city council

4 Equipment(Kayaks)
Cash

(Pay cash for kayaks)

10 Cash
Service Revenue(Clinic)

(Receive cash and hold kayak clinic)

10 Unearned Revenue
Sevice Revenue(Clinc)

(Receive cash and hold kayak clinic)

17 Cash
Sevice Revenue(Clinc)

(Receive cash and hold kayak clinic)

24 Accounts Payable
Cash

(Pay cash on account)

September

1 Prepaid Rent
Cash

(Pay cash for one-year rental policy)

21 Cash
Service Revenue(Clinic)

(Receive cash for rock climbing clinic)

October

17 Cash
Service Revenue(Clinic)

(Receive cash for orienteering clinic)

December

8 Misc Expense
Cash

(Pay cash for race permit)

12 Supplies(Racing)
Accounts Payable

(Purchase racing supplies on account)

15 Cash
Service Revenue(Race)

(Receive cash for adventure race)

16 Salaries Expense
Cash

(Pay cash for salary)

31 Dividends
Cash

(Pay cash for dividend)

Requirement 2
Adjusting Entries
December

31

Depreciation Expense
Accumulated Depreciation

(Adjust accumulated depreciation)

31

Insurance Expense
Prepaid Insurance

(Adjust prepaid insurance)

31

Rent Expense
Prepaid Rent

(Adjust prepaid rent)

31

Supplies Expense(Office)
Supplies(Office)

(Adjust office supplies)

31

Interest Expense
Interest Payable

(Adjust interest payable)

31

Supplies Expense(Racing)
Supplies(Racing)

(Adjust racing supplies)

31

Income Tax Expense

Income Tax Payable

(Adjust income tax payable)

Requirement 6
Closing Entries
December

31 Service Revenue(Clinic)
Service Revenue(Racing)
Retained Earnings

31 Retained Earnings
Advertising Expense
Depreciation Expense
Income Tax Expense
Insurance Expense
Interest Expense
Legal Fees Expense
Misc Expense
Rent Expense
Salaries Expense
Supplies Expense(Office)
Supplies Expense(Racing)

31 Retained Earnings
Dividends

All account entries have been well entered into the general ledger account as we

Debit

Credit

30,000
30,000

28,000
28,000

3,000
3,000

4,000
4,000

10,500
10,500

1,800
1,800

2,400
2,400

13,200
13,200

17,900
17,900

1,200
1,200

2,800
2,800

20,000
20,000

2,000
2,000

4,000
4,000

8,000
8,000

2,400
2,400

800
800

1,500
1,500

750

750

2,600

2,600

14,000
14,000

52,900
20,000
72,900

35,750
1,000
8,000
14,000
2,400
750
1,500
1,200
800
2,000
1,500
2,600

4,000
4,000

neral ledger account as well as adjusting the entries and closing entries.

Cash
10,000
10,000
2,000
2,300
4,000
30,000
3,000

4,800
1,500
300
12,000
700
28,000
1,800

10,500

2,400

13,200
17,900
20,000
64,200

1,200
2,000
4,000

Interest Payable

Prepaid Insurance
4,800
2,400
2,400

Prepaid Rent
2,400
1,600

Racing Supplies
2,800
2,600
200

Mountain Bikes
12,000
12,000

Accum. Depr.
8,000
8,000

Income Tax Payable

750
750

Dividends
4,000
4,000

14,000
14,000

Clinic Revenue
4000

52900

Advertising Expense

2,000
2,300
7,000
10,500

300
700
1,000

13,200
17,900
52,900

Depr. Expense
8,000
8,000

Accounts Payable

8000

Insurance Expense
2,400
2,400

2400

1800

Long-term Loan
30,000
30,000

Racing Revenue
20000

Permit Expense
1,200
1,200

Rent Expense
800
800

Rac. Supp. Expense

2,600
2,600

2600

Interest Expense
750
750

750

Income Tax Expense

14,000
14,000

The accounts have been correctly posted. However its important to indicate the date as well as a des

Prepaid Rent
800

Mountain Bikes

Office Supplies
1,800
1,500
300
Kayaks
28,000
28,000

Accounts Payable
1,800
2,800
2,800

Long-term Loan

Unearned Revenue
4,000

4,000
0

Common Stock
10,000
10,000
20,000

Racing Revenue
20,000
20,000

Permit Expense

Legal Fees Expense

1,500
1,500

1500

Salaries Expense

1200

Rent Expense

2,000
2,000

2000

Off. Supp. Expense

800

1,500
1,500

1500

Income Tax Expense

14000

he date as well as a descrption of the transcaction recorded. The debit side and credit side must also be indica

side must also be indicated.

Great Adventures, Inc,

Adjusted Trial Balance
December 31, 2012
Accounts
Cash
Prepaid Insurance
Prepaid Rent
Supplies (Office)
Supplies (Racing)
Equipment (Bikes)
Equipment (Kayaks)
Accumulated Depreciation
Accounts Payable
Income Tax Payable
Interest Payable
Notes Payable
Common Stock
Dividends
Service Revenue (Clinic)
Service Revenue (Racing)
Advertising Expense
Depreciation Expense
Income Tax Expense
Insurance Expense
Interest Expense
Legal Fees Expense
Miscellaneous Expense
Rent Expense
Salaries Expense
Supplies Expense (Office)
Supplies Expense (Racing)
Totals

Debit

Credit

$ 64,200
2,400
1,600
300
200
12,000
28,000
$

8,000
2,800
14,000
750
30,000
20,000

4,000
15,900
20,000
1,000
8,000
14,000
2,400
750
1,500
1,200
800
2,000
1,500
2,600
$ 148,450

$ 148,450

The trial balance is correct and all entries are in place. The adjusted trial balance also balances.

also balances.

Great Adventures, Inc.

Income Statement
For the period ended December 31, 2012
Revenues:
Service Revenue (Clinic)
Service Revenue (Racing)
Total Revenues
Expenses:
Advertising Expense
Depreciation Expense
Income Tax Expense
Insurance Expense
Interest Expense
Legal Fees Expense
Miscellaneous Expense
Rent Expense
Salaries Expense
Supplies Expense (Office)
Supplies Expense (Racing)
Total Expenses
Net Income

$ 52,900
20,000
$ 72,900
1,000
8,000
14,000
2,400
750
1,500
1,200
800
2,000
1,500
2,600
35,750
$ 37,150

All the revenue and expenses are well alocated to get the net income. The income statement is correc

e statement is correctly prepared.

Great Adventures, Inc.

Statement of Stockholders's Equity
For the period ended December 31, 2012

Common
Stock
Balance at July 1
Issuance of common stock
Add: Net income for 2012
Less: Dividends
Balance at December 31

20,000
$ 20,000

All posting are correct showing the right balances .

Retained
Earnings

37,150
(4,000)
$ 33,150

Total Stockholder's
Equity

20,000
37,150
(4,000)
53,150

Great Adventures, Inc.

Balance Sheet
December 31, 2012
Assets
Cash
Prepaid Insurance
Prepaid Rent
Supplies (Office)
Supplies (Racing)
Total Current Assets

Liabilities

64,200
2,400
1,600
300
200
68,700

Accounts Payable
Interest Payable
Income Tax Payable
Total Current Liabilities
Notes Payable
Stockholders' Equity

12,000
28,000
(8,000)

Equipment (Bikes)
Equipment (Kayaks)
Accum. Depr.
Total Assets

100,700

The balance sheet is well balanced and correct.

Common Stock
Retained Earnings
Total Stockholder's Equity
Total Liabilities and Stockholder's
Equity

Liabilities

2,800
750
14,000
17,550
30,000

holders' Equity

20,000
33,150
53,150
$

100,700

Great Adventures, Inc.

Post-Closing Trial Balance
December 31, 2012
Accounts
Cash
Prepaid Insurance
Prepaid Rent
Supplies (Office)
Supplies (Racing)
Equipment (Bikes)
Equipment (Kayaks)
Accumulated Depreciation
Accounts Payable
Income Tax Payable
Interest Payable
Notes Payable
Common Stock
Retained Earnings
Totals

Debit

Credit

64,200
2,400
1,600
300
200
12,000
28,000
$

108,700

8,000
2,800
14,000
750
30,000
20,000
33,150
108,700

All accounts are correctly debited and credited and the post closing trial balance balances as required

balances as required.