April 1 Stockholders invested $40,000 cash in the business in exchange for common stock.
4 Purchased land costing $30,000 for cash.
8 Incurred advertising expense of $1,800 on account.
11 Paid salaries to employee $1,500.
12 Hired park manager at a salary of $4,000 per month, effective May 1.
13 Paid $1,500 cash for a one –year insurance policy.
17 Declared and paid a $1,000 cash dividend.
20 Received $5,700 in cash for admission fees.
25 Sold 100 coupon books for $25 each.Each book contains 10 coupons that entitle the holder to
1 admission per park.
30 Received $8,900 in cash admission fees.
30 Paid $900 on balance owed for advertisiing incurred on April 8.
Mendez uses the following account: Cash;Prepaid Insurance;Land;Accounts payable;Unearned Admissions Revenue; Common Stock;Dividends; Admission Revenue; Advertising Expense; and Salaries Expense.
II) Jane Kent is a Licensed CPA. During the first month of operations of her business, Jane Kent Inc, the following events and transactions occurred.
May 1 Stockholders invested $25,000 cash in exchange for comon stock.
2 Hired a secretary-receptionist at a salary of $2,000 per month.
3 Purchased $2,500 of supplies on acount from Read Supply Company.
7 Paid office rent of $900 cash for the month.
11 Completed a tax assignment and billed client $2,100 for services provided.
12 Received $3,500 advance on a management consulting engagement .
17 Received cash of $1,200 for services completed for H. Arnold Co.
31 Paid Secretary-receptionist $2,000 salry for the month.
31 Paid 40% of balance due Read Supply Company.
Jane uses the following chart accounts: No. 101 Cash, Mo. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 205 Unearned Revenue, No.311 Common Stock, No. 400 Service Revenue, no. 726 Salaries Expense, and No. 729, Rent Expense.
(a) Journalize the transactions.
(b) Post to the lefger accounts
(c) Prepare a trial balance on May 31,2008.
III)Tony Masasi started his own consulting firm, Masasi Company, Inc, on June 1 2008.The trial balance at June 30 is shown on page 129.
MASASI COMPANY, INC
Account Number Debit Credit
101 Cash 7,150
112 Accounts Receivable 6000
126 Supplies 2000
130 Prepaid Insurance 3000
157 Office Equipent 15000
201 Accounts Payable 4500
209 Unearned Revenue 4000
311 Common Stock 21750
400 Service Revenue 7900
726 Salaries Expense 4000
729 Rent Expense 1000
In addition to those accounts listed on the trial balance , the chart of accounts for Masasi Company, Inc. also contains the following account numbers: No. 158 Accumulated Depreciation –Office Equipment, No. 212 Salaries Payable, No. 631 Supplies Expense, No. 711 Depreciation Expense, no 722 Insurance Expense, and No. 732 Utilities Expense.
1. Supplies on hand at June 30 are $600
2. A utility I bill for 4150 has not been recorded and will not be paid until next month.
3. The Insurance policy is for a year.
4. $2,500 of unearned service revenue has been earned at the end of the month.
5. Salaries of $2,000 are accrued at June 30.
6. The office equipment has 5-year life with no slavage value. It is being deperciated at $250 per month for 60 moths.
7. Invoicees representing $1,000 of services performed during the month have been recorded as of June 30.
a)Prepare the adjusting entries for the month of June. Use J3 as the page number for your journal.
b) Post the adjusting entries to the ledger accounts. Enter the total from the trial balane as beginning account balances and place a check mark in the posting reference clumn
c)Prepare an adjusted trial balance at June 30,2008.
NEOSHO RIVER RESORT, INC.
Account Number Debit Credit
101 Cash $19,600
126 Supplies 3330
130 Prepaid Insurance 6000
140 Land 25000
143 Cottages 125000
149 Furniture 26000
201 Accounts Payable $6,500
208 Unearned Rent 7400
275 Mortgage Payable 80000
311 Common Stock 100000
332 Dividends 5000
429 Rent Revenue 80000
622 Repair Expense 3600
726 Salaries Expense 51000
732 Utilities Expense 9400
In addition to those accounts listed on the trial balance, the chart of accounts for Neosho River Resort also contains the following accounts and account numbers: No.112 Accounts Receivable, No. 144 Accumulated Depreciation-Cottages, no. 150 accumulated Depreciation-Furniture, No.212 Salaries payable, No 230 Interest Payable, No. 320 Retained Earnings, No.620 Depreciation Expense-Cottages No. 621 Depreciation Expense-Furniture , No.631 Supplies Expense , No 718 Interest Expense, and No. 722 Insurance Expense.
1.Insurance expires the rate of $400 per month.
2.A count on August 31 shows $600 of supplies on hand.
3.Annual depreciation is $6,000 on cottages and $2400 on furniture
4.Uneraned rent of $4100 was earned prior to august 31.
5.Salaries of $400 were unpaid at August 31.(Use Accounts Receivable.)
7.The mortagage interest rate is 9% per year(The mortgage was taken out on august 1.)
(a) Journalize the adjusting entries onaugust 31 for the 3-month period June 1-August 31
(b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts and post the adjusting entries (Use J1 as the posting reference)
(c) Prepare an adjusted trial balance on August 31.
(d) Prepare an income statement and retained earnings statement for the 3 months ending August 31 and a balance sheet as of August 31.
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