Bob Night opened The General Favorite Fishing Hole. 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 Holes
Charts of Accounts
142 Office supplies
144 food supplies
145 preparid insurance
181 fishing boats
181.2 accum. depr. fishing boats
202 accounts payable
219 wages payable
311 bob night, capital
312 bob night, drawing
313 income summary
401 registration fees
511 wages expense
521 rent expense
523 office supplies expense
524 food supplies expense
525 telephone expense
533 utilities expense
535 insurance expense
536 postage expense
542 depr. exp. fishing boats
The following transactions took place during April 20----
Apr 1 night invested cash in business, 90,000
Apr 1 paid insurance premium for camping season, 9,000
Apr 2 paid rent for lodge and campgrounds forthemonth of apr 40,000
Apr 2 deposited registration fees, 35,000
Apr 2 purchased 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. arrangement were made to pay for the boats in July.
Apr 3 purhcased food supplies from acme super market on acount, 7,000
Apr 5 purchase office supplies from gordon office supplies on account, 500
Apr 7 deposited registration fees, 38,600
Apr 10 purchase food supplies from acme super market on account, 8,200
Apr 10 paid wages to fishing guides, 10,000
Apr 14 deposited registration fees, 30,050
Apr 16 purchased food supplies from acme super market on account, 9,000
Apr 17 paid wages to fishing guides, 10,000
Apr 18 paid postage 150
Apr 21 deposited registration fees, 35,600
Apr 24 purchased food supplies from acme super market on acct, 8,500
Apr 24 paid wages to fishing gudies, 10,000
Apr 28 deposited registration fees, 32,000
Apr 9 paid wages to fishing guides, 10,000
Apr 30 purchased food supplies from a acme super market on account, 6,000
Apr 30 paid acme super market on account, 32,700
Apr 30 paid utilities bill, 2,000
Apr 30 paid telephone bill, 1,200
Apr 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 ye paid, at the end of april, 500.
1. enter above transactions in a general journal. enter transactions from April 1-5 on page 1, April 7-18 on page 2, April 21-29 and the first two entries for April 30 on page 3, and the remaining entires for April 30 on page 4.
2. post the entries to the general ledger. (if you are not using the working papers that accompany this text, you will need to enter the account titles and account number in the general ledger accounts.
3. prepare a trial balance on a work sheet
4. complete the work sheet.
5. prepare the income statement.
6. prepare the statement of owner's equity.
7. prepare the balance sheet.
8. journalize the adjusting entries (page5)
9. post the adjusting entries to the general ledger.
10. journalize the closing entries (pages 5 and 6).
11. post the closing entries to the general ledger.
12. prepare a cost closing trail balance.