3 125 value: 1.25 points E3-10 Recording Journal Entries and Determining Net Inc

Question

3 125 value: 1.25 points E3-10 Recording Journal Entries and Determining Net Income [LO 3-2, LO 3-3] Greek Peak is a ski resort in upstate New York. The company solls lift tickets, ski lessons, and equipment. It operates several restaurants and rents townhouses to vacationing skiers. The following a. Borrowed $680,000 from the bank on December 1, signing a note payable, due in six months b. Purchased a new snowplow for $31,500 cash on December 31. d. Incurred $28,400 in routine maintenance f. Daily lift passes were sold this month for a total of $87,000 cash. h. Paid half the charges incurred on account in (c). ski supplies for $17,600 on account. for the chairlifts; paid cash. $77,500 for season passes (beginning in the new year) on a to be rented for five days in January. . Paid $24,900 in wages to employees for the month of December. Required: 1. Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Borrowed $680,000 from the bank on December 1, signing a note payable, due in six months. Record the transaction. General Journal Debit Credit

Explanation / Answer

Answer:

Transaction

General Journal

Debit $

Credit $

a

Cash

680,000

Notes Payable (short Term)

680,000

( To record the cash borrowed form bank)

b

Equipment

31500

Cash

31,500

( To record the purchase of Equipment )

c

Supplies

17600

Accounts payable

17,600

( To record the purchase of supplies )

d

Repairs and maintenance Expanses

28400

Cash

28,400

( To record the Repairs and maintenance
Expanses   )

e

Cash

77500

Unearned Revenue

77500

( To record the Unearned Revenue )

f

Cash

87000

Service Revenue

87,000

( To record the Revenue earned   )

g

Cash

525

Unearned Revenue

525

( To record the Unearned Revenue )

h

Accounts payable (17600/2)

8800

Cash

8,800

( To record the )

i

Salary and wages Expanses

24900

Cash

24,900

( To record the )

Transaction

General Journal

Debit $

Credit $

a

Cash

680,000

Notes Payable (short Term)

680,000

( To record the cash borrowed form bank)

b

Equipment

31500

Cash

31,500

( To record the purchase of Equipment )

c

Supplies

17600

Accounts payable

17,600

( To record the purchase of supplies )

d

Repairs and maintenance Expanses

28400

Cash

28,400

( To record the Repairs and maintenance
Expanses   )

e

Cash

77500

Unearned Revenue

77500

( To record the Unearned Revenue )

f

Cash

87000

Service Revenue

87,000

( To record the Revenue earned   )

g

Cash

525

Unearned Revenue

525

( To record the Unearned Revenue )

h

Accounts payable (17600/2)

8800

Cash

8,800

( To record the )

i

Salary and wages Expanses

24900

Cash

24,900

( To record the )

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