I-04.03 Problem

I-04.03 Problem - 30,000-600,100 $ 600,100 $ The company...

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I-04.03 Wild River Rafting provides guided tours of the Rattlesnake River. Most of the company's business activity occurs during the summer season, so the company ends its fiscal year on August 31. Below is the unadjusted trial balance for the year. It is followed by information about necessary adjusting entries. WILD RIVER RAFTING CORPORATION Trial Balance August 31, 20X5 Debits Credits Cash 20,700 $ $ - Prepaid License 10,000 - Equipment 167,500 - Accumulated Depreciation - 48,900 Accounts Payable - 3,100 Loan Payable - 65,000 Capital Stock - 55,000 Retained Earnings (beginning) - 13,200 Dividends 5,000 - Revenues - 414,900 Wages Expense 303,000 - Advertising Expense 42,200 - Bus Expense 21,700 - Insurance Expense
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Unformatted text preview: 30,000-600,100 $ 600,100 $ The company has not recorded depreciation of $12,000 on rafting equipment. The prepaid license granted access to the Rattlesnake during 20X5, and is now expired. The company hires a shuttle bus company. The billing for August amounted to $6,600 and has not been paid or recorded. The loan has accrued interest of $2,000 that is now due. (a) Prepare a worksheet incorporating the necessary adjustments. (b) Prepare an income statement and statement of retained earnings for fiscal year 20X5, and a balance sheet as of August 31, 20X5. (c) Evaluate the company's financial results and comment on the dividend....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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