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Accounts Name Cash Accts Receivable Allowance for doubtful accounts Boat inventory Boat accessory inventory supplies Prepaid insurance prepaid rent

1. Prepare a journal entry for each transaction in October.
2. Prepare an unadjusted trial balance as of October, 31 199.
3. Journalize any necessary adjusting entries for October.
4. Prepare an adjusted trial balance as of October, 31 1999.
5. Prepare a multiple-set income statement for the month ended October 31, 1999.
6. Prepare a statement of retained earnings for the month ended October 31, 1999.
7. Prepare a classified balance sheet as of October 31, 1999.
8. Assuming that October 31 is the company’s fiscal year-end, journalize the necessary closing entries.

Accounts Name Cash Accts Receivable Allowance for doubtful accounts Boat inventory Boat accessory inventory supplies Prepaid insurance prepaid rent Store, office, & boat equipment Accumulated depreciation Accounts payable Accrued salaries payable Accrued interest payable Unearned revenue Cash dividends payable Other accrued expenses payable Long-term notes payable Common Stock (no par) Retained earnings Income summary Boat sales revenue Accessory sales revenue Boat repair revenue Cost of goods sold : Boat sales Cost of goods sold: Accessory sales Salaries expense Supplies expense Rent expense Depreciation expense Utilities expense Advertising expense interest expense Bad debt expense Organization cost expense Transactions for October 1999 No. Date 1 Oct. 1 Joe, with the help and advice of his attorney, Jason Rutherford, issued to himself 5,000 shares of Truckee Boats, Incorporate common stock (no Par) at a price of $20 per share. Joe transferred $100,000 cash from his personal bank account and deposited it in a checking account in the name of Truckee Boats, Inc. 2. Oct.1 Truckee Boats hired Henry at $10 per hour. Henry’s typical workweek will be 8 hours a day, 5 days per week. Joe and Henry are paid on the first of each month for the month just ended. 3. Oct.1 Truckee Boats paid Far West Insurance Agency a one-year general property and liability insurance premium of $2,196.
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4. Oct.1 Truckee Boats paid $2,400 to Ace Property Management Group for October, November, and December rent on the sales office and boat lot. 5. Oct.3 Truckee Boats wrote a $900 check to Jason Rutherford to pay for his assistance in issuing the common stock. The payment is considered a start-up cost. It should be recorded as organization cost and will be expensed immediately. 6. Oct.5 Truckee Boats purchased boat moving equipment, office furniture, and boat repair machinery. Truckee Boats paid $6,880 in cash and signed a four-year, 9.6%, $20,000 installment note payable to First National Bank. Equal monthly principal and interest payments of $503.42 are due the 5 th of each month, beginning November 5. (The note assumes a 360-day year and 30 days of interest charged for each full month. Moths with 31 days accrue only 30 days of interest, but so does February.) 7. Oct.6 Truckee Boats purchased, at a cost of $11,500, a Fast Glass model Swellcraft ski boat for resale. Transportation cost from the Swellcraft factory to Truckee Boats was $550, which Truckee paid in cash. Truckee uses a perpetual inventory system for both boats and accessories. Payment terms to Swellcraft are net 60 days or within two days of the sales of the boat. 8. Oct. 6 Truckee Boats purchased on account a variety of accessory merchandise at a cost of $1,330 from Miller Ski Supplies. Freight was paid by Miller. Terms are net 30 days. 9. Oct. 8 Truckee Boats purchased supplies costing $760, paying cash. 10. Oct.9 john Phillips, a local ski enthusiast, provided Truckee Boats with its first sale when he bought a $490 slalom ski for cash. The ski had been included in the October 6 purchase and had cost Truckee $350. 11. Oct. 10 Albert Snell, another skier, brought his Manvader ski boat in to be “summarized.” Henry changed both the engine and out drive oil, drained the water from the engine, replaced the spark plugs, and tuned the engine. Albert, a long time friend of Joe, agreed to pay the $220 invoice within Truckee Boats’ customary 30-day trade terms. 12. Oct. 12 Sold Frank Featherstone a dry suit with a $410 price. After checking his credit, he was allowed the 30-day trade terms. The dry suit also included in the October 6 purchase and had cost $225. 13. Oct. 12 Truckee Boats purchased additional accessory merchandise from Fisherman’s Warehouse at a cost of $860. Truckee agreed to the 15-day payment terms from Fisherman’s and paid $40 cash to a trucking firm for transportation. 14. Oct. 13 Truckee Boats paid Admirable Advertising Agency $180 for a newspaper advertisement to be published in the Saturday, October 17 edition of the Las Vegas Gazette. 15. Oct. 14 After inspecting the merchandise from Fisherman’s Warehouse on October 12, Joe noticed that part of the merchandise was damaged. Truckee Boats returned the damaged merchandise, which had cost $130, and received a debit memorandum from Fisherman’s Warehouse. 16. Oct. 15 Art Jensen, a new customer, purchased fishing gear at a price pf $335, paying cash. The merchandise was included in the October 12 purchase at a cost of $222. 17. Oct. 16 Joe was hopeful that his upcoming newspaper advertisement would bring in boat customers, so he purchased a 15-foot, Swellcraft fishing boat with a 25
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1 Prepare a journal entry for each transaction in October
Sn.No Date
Accounts T itle & Description
Common Stock ( no par)
( Issue of 5000 shares @ $20 each...

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