Breakdown and Analysis of the Financial Performance of Superstar Ice Rinks Inc. for 2017

Assignment 1

ACTG 5100K

Nivin Premkumar & Shanu Utharan

Breakdown and analysis of the financial performance of Superstar Ice Rinks Inc. for 2017



Journal Entries

i Property, Plant and Equipment Dr Long term debt Cr Common shares Cr Cash Cr

Purchase of arena by cash, shares and long-term debt

iia Unearned Revenue Dr Revenue Cr

iib Cash Dr Accounts receivable Dr Revenue Cr

iic Cash Dr Accounts receivable Cr

$

$

$ $

$

4,750,000

1,218,750

5,701,250 625,000

$ 1,875,000

$ 1,253,000

$ 1,622,000

$ 1,218,750

$ 6,326,250

Revenue earned from renting ice, pro shop and restaurant, including and an amount of $614000 was also collected from customers

$

iii Cash Dr Unearned Revenue Cr Collection of deposits from leagues for play during September

iv No entry

va Wages Payable Dr Cash Cr

vb Wages Expense Dr Cash Cr

vc Wages Expense Dr Wages Payable Cr

$ to April

$ $ $

1,310,000

21,250 1,040,750 35,250

937,500 1,125,000

531,750 31,250

$

$ $ $

$ $

$ $

1,310,000

21,250 1,040,750 35,250

937,500 1,125,000

531,750 31,250

Payment of wages for 2017 including remainder of wages from 2016

via Long-term debt- current Dr Cash Cr

vib Long term debt Dr Long-term debt- current Cr

Payment of long-term debt

viia