Question: Prepare a trial balance as of December 31.
RIVERHAWK EXPEDITIONS
Trial Balance
November 30, 2018 |
| Accounts |
Debits |
Credits |
| Cash |
$ |
10,600 |
|
|
| Accounts Receivable |
|
5,200 |
|
|
| Prepaid Insurance |
|
1,100 |
|
|
| Equipment |
|
24,800 |
|
|
| Land |
|
180,500 |
|
|
| Accounts Payable |
|
|
$ |
4,000 |
| Notes Payable |
|
|
|
50,700 |
| Common Stock |
|
|
|
134,000 |
| Retained Earnings |
|
|
|
14,800 |
| Dividends |
|
5,700 |
|
|
| Service Revenue |
|
|
|
75,700 |
| Advertising Expense |
|
11,700 |
|
|
| Salaries Expense |
|
29,000 |
|
|
| Rent Expense |
|
10,600 |
|
|
| |
|
|
|
|
| Totals |
$ |
279,200 |
$ |
279,200 |
| |
|
|
|
|
|
The following transactions occur during December 2018:
December 1 Pay rent for mountain lodges the month of December, $1,600.
December 5 Provide guided tour to customers in Grand Teton National Park for cash, $3,500.
December 8 Borrow from a local bank by signing a note payable, $17,000. The note is due in one year with a 6% interest rate.
December 12 Receive cash from customers as payment for a guided tour that occurred on November 28, $4,200.
December 13 Issue additional shares of common stock for cash, $27,000.
December 15 Pay employee salaries for the first half of the month, $1,900.
December 17 Purchase advertising on several local radio stations to be aired during the following two weeks, $1,700.
December 22 Provide guided tour to customers in Yellowstone National Park on account, $3,900.
December 23 One of the customers from the December 22 tour claims to have seen the legendary creature Bigfoot. The company believes this exciting news will create additional revenue of $27,000 next year.
December 26 Purchase several pieces of hiking equipment to give customers a more enjoyable adventure, such as night-vision goggles, GPS, long-range binoculars, and video cameras, for cash, $29,200.
December 28 Pay cash on accounts payable, $2,200.
December 31 Pay dividends to stockholders, $2,700.