chapter_3__solution - Homework #3 Chapter 3 Homework...

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Homework #3 Chapter 3 Homework Problems E3-8 Recording Journal Entries LO4 Vail Resorts Incorporated is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and rents townhouses to vacationing skiers. The following hypothetical December transactions are typical of those that occur at the resort. a. Borrowed $473,100 from the bank on December 1, signing a short-term note payable due in six months. b. Purchased a new snow plow for $19,850 cash on December 31. c. Purchased ski equipment inventory for $9,568 on account to sell in the ski shop. d. Incurred $16,900 in routine maintenance expenses for the chair lifts; paid cash. e. Sold $71,000 of season passes and received cash. f. Sold daily lift passes for a total of $64,500 in cash. g. Sold a pair of skis from the ski shop to a customer for $312 on account. (The cost of the skis was $200.) h. Received a $376 deposit on a townhouse to be rented for five days in January. i. Paid half the charges incurred on account in (c). j. Received $150 on account from the customer in (g). k. Paid $93,000 in wages to employees for the month of December. Required: 1. Prepare journal entries for each transaction.(Remember to check that debits equal credits and that the accounting equation is in balance after each transaction.) 2. Assume that Vail Resorts had a $1,200 balance in Accounts Receivable at the beginning of December. Determine the ending balance in the Accounts Receivable account at the end of December based on transactions (a) through (k). 1. General Journal Debit Credit a. Cash 473,100 Short-term notes payable 473,100 b. Equipment 19,850 Cash 19,850 c. Merchandise inventory 9,568 Accounts payable 9,568
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d. Repair and maintenance expense 16,900 Cash 16,900 e. Cash 71,000 Unearned pass revenue 71,000 f. Cash 64,500 Lift revenue 64,500 g. Accounts receivable 312 Ski shop sales revenue 312 Cost of goods sold 200 Merchandise inventory 200 h. Cash 376 Unearned rent revenue 376 i. Accounts payable 4,784 Cash 4,784 j. Cash 150 Accounts receivable 150 k. Wages expense 93,000 Cash 93,000 2. Accounts Receivable ending balance $ 1,362.
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P3-1 Recording Nonquantitative Journal Entries (AP3-1) LO The following list includes a series of accounts for Choudhury Corporation that has been operating for three years. These accounts are listed and numbered for
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chapter_3__solution - Homework #3 Chapter 3 Homework...

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