RiverHawk Expeditions provides guided tours in scenic mountainous areas. After t

Question

RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2015, RiverHawk has the following account balances: RIVERHAWK EXPEDITIONS Trial Balance November 30, 2015 Accounts Debits Credits Cash $ 13,000 Accounts Receivable 6,400 Prepaid Insurance 2,300 Equipment 26,000 Land 198,500 Accounts Payable $ 5,200 Notes Payable 51,900 Common Stock 158,000 Retained Earnings 16,000 Dividends 6,900 Service Revenue 76,900 Advertising Expense 12,900 Salaries Expense 30,200 Rent Expense 11,800 Totals $ 308,000 $ 308,000 The following transactions occur during December 2015: December 1 Pay rent for mountain lodges the month of December, $2,800. December 5 Provide guided tour to customers in Grand Teton National Park for cash, $4,700. December 8 Borrow from a local bank by signing a note payable, $29,000. 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, $5,400. December 13 Issue additional shares of common stock for cash, $39,000. December 15 Pay employee salaries for the first half of the month, $3,100. December 17 Purchase advertising on several local radio stations to be aired during the following two weeks, $2,900. December 22 Provide guided tour to customers in Yellowstone National Park on account, $5,100. December 23 One of the customers from the December 26 tour claims to have seen the legendary creature Bigfoot. The company believes this exciting news will create additional revenue of $39,000 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, $30,400. December 28 Pay cash on accounts payable, $3,400. December 31 Pay dividends to stockholders, $3,900.

Record each transaction.

Required:

Explanation / Answer

Journal Entries:

Date Account Name Debit Credit 2015 Dec 1 Rent 2800          Cash 2800 Dec 5 Cash 4700           Service Revenue 4700 Dec 8 Cash 29000           Notes Payable 29000 Dec 12 Cash 5400          Accounts Receivable 5400 Dec 13 Cash 39000          Common Stock 39000 Dec 15 Salaries 3100          Cash 3100 Dec 17 Advertisement Expense 2900           Cash 2900 Dec 22 Accounts Receivable 5100           Service Revenue 5100 Dec 23 No Entry Dec 26 Cash 30400          Hiking Equipment 30400 Dec 28 Accounts Payable 3400          Cash 3400 Dec 31 Dividends 3900          Cash 3900

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