. 1428 points Greek Peak is a ski resort in upstate New York. The company sells
ID: 2407762 • Letter: #
Question
. 1428 points Greek Peak is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and rents townhouses to vacationing skiers. The folliowing hypothetical December transactions are typical of those that occur at the resort a Borrowed $670,000 from the bank on December 1, signing a note payable, due in six months b Purchased a new snowplow for $24.250 cash on December 31 c Purchased ski supplies for $17,100 on account d. Incurred $27,200 in routine maintenance expenses for the chairlifts, paid cash. e. Received $71,250 for season passes (beginning in the new year) f Daily lift passes were sold this month for a total of $93,000 cash. g Received a $505 deposit on a townhouse to be rented for five days in January h. Paid half the charges incurred on account in (c) i. Paid $18,200 in wages to employees for the month of December De Required: 1. Prepare accrual basis journal entries for each transaction. (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Borrowed $670,000 from the bank on December 1, signing a note payable, due in six months. Record the transaction. Note: Enter debits before credits. Clear entry View general journal Record entry 2. Calculate the company's preliminary net income.Explanation / Answer
a)cash(db)670000
notes payable(cR)670000
b)equipment(db)24250
cash(cr)24250
c)supplies(db)17100
accounts payable(cr)17100
d)repairs and maintenance epsense(db)27200
cash(cr)27200
e)cash(db)71250
uneanred revenue(cR)71250
f)cash(db)93000
service revenue(cr)93000
g)cash(db)505
uneanred revenue(cR)505
h)accounts payable(db)17100/2=8550
cash(cr)8550
i)salaries and wages expense(db)18200
cash(cr)18200
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