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The Account Cycle
Bob Night opened a fishing camp named The General's Favorite Fishing Hole?on April 1, 2014. The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques. The chart of accounts for the camping operations is provided below.
The General's Favorite Fishing Hole - Chart of Accounts.
401. Registration Fees
142. Office Supplies
511. Wages Expense
144. Food Supplies
521. Rent Expense
145. Prepaid Insurance
523. Office Supplies Expense
181. Fishing Boats
524. Food Supplies Expense
181.1. Accum.Deprec.? Fishing Boats
525. Telephone Expense
202. Accounts Payable
533. Utilities Expense
219. Wages Payable
535. Insurance Expense
311. Bob Night Capital
536. Postage Expense
312. Bob Night Drawing
542. Depreciation Expense Fishing Boats
313. Income Summary
The following transactions took place during April 2014
April: 1 Night invested cash in the business $90,000.
1 Paid insurance premium for camping season, 9,000.
2 Paid rent for lodge and campgrounds for the month of April, $40,000.
2 Deposited registration fee, $35,000
2 Purchase ten fishing boats on account for $60,000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Arrangements were made to pay for the boats in July.
3 Purchase food supplies from Acme Super Market, on account, $7,000.
5 Purchase office supplies from Gordon Office Supplies on account, $500.
7 Deposited registration fees, $38,600.
10 Purchased food supplies from Acme Super Market on account, $8,200
10 Paid wages to fishing guides, $10,000
14 Deposited registration fees, $30,500
16 Purchased food supplies from Acme Super Market on account, $9,000
17 Paid wages to fishing guides, $10,000
18 Paid postage , $150.
21 Deposited registration fees of $35,600.
24 Purchased food supplies from Acme Super Market on account, $8,500
24 Paid wages to fishing guides, $10,000.
28 Deposited registration fees of $32,000.
29 Paid wages to fishing guides, $10,000.
30 Purchased food supplies from Acme Super Market on account, $6,000.
30 Paid Acme Super market on account $32,700.
30 Paid utilities bill, $2,000.
30 Paid telephone bill, $1,200.
30 Bob Night withdrew cash for personal use, $6,000
Adjustment information for the end of April is provided below.a Office supplies remaining on hand, $100.
b Food supplies remaining on hand, $8,000.
c Insurance expired during the month of April, $1,500.
d Depreciation on the fishing boats for the month of April, $1,000.
e Wages earned , but not yet paid, at the end of April, $500.
Required:1. ?Enter the above transactions in a general journal.
2. ?Post the entries to the general ledger.
3. ?Prepare a trial balance on a work sheet (10 Column).
4. ?Journalize the adjusting entries
5. ?Post the adjusting entries to the general ledger
6. ?Complete a 10 Column work sheet.
7. ?Prepare the income statement.
8. ?Prepare the statement of owner's equity
9. ?Prepare the balance sheet..
10. Journalize the closing entries (page 5 and 6)
11. ?Post the closing entries to the general ledger.
12. ?Prepare a post-closing trial balance.
142 Office Supplies
144 Food Supplies
145 Prepaid Insurance
181 Fishing Boats
181.1 Accum.Deprec.? Fishing Boats
202 Accounts Payable
Paper#9208988 | Written in 27-Jul-2016Price : $22