Ask Me Help Desk - Transactions

Transactions

Bob night opened =93 the generals fishing hole=94 the fishing camp is opened
From April through September and attracts many famous college basketball
Coaches during the off-season. Guests typically register doe 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 generals favorite fishing hole
Chart of accounts
Assets
101 Cash
142 Office Supplies
144 Food Supplies
145 prepaid insurance
181 fishing boats
181.1 accum depr- fishing boats
Liabilities
202 accounts payable
219 wages payable
Owners Equity
311 Bob night, capital
312 Bob Night, Drawing
313 Income Summary
Revenues
401 Registration Fees
Expenses
511 wages expense
521 rent expense
523 Office sales expense
524 food expense
525 telephone expense
533 utilities expense
535 Insurance expense
536 postage exp
542 depr exp- fishing boats

April 1st night invested cash in business $90,000
April 1st paid insurance premium for camping season $9,000
April 2. Paid rent for lodge and campgrounds for the month of April, $40,000
April 2. Deposited registration fees. $35,000
April 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. Arrangements were made to pay the boat in July.
April 3rd. Purchased food supplies from acme supermarket on account $7000.
April 5th. Purchased office supplies from Gordon office supplies on
Account $500.
April 7th. Deposited registration fees. $38,600.
April 10th. Purchased food supplies from acme super market on account $8,200
April 10th. Page wages to guides $10.000.
April 14th deposited registration fees. $30,500.
April 16th purchased food supplies from acme super market on account $ 9000.
April 17th page wages to fishing guides, 10,000.
April 18th paid postage. $150.
April 21st deposited reg fees. $35,600.
April 24th. Purchased food supplies from acme super market. $8,500.
April 24th paid wages to fishing guides. $10,000
April 28th deposited registration fees. $32,000
April 29th paid wages to guides $10,000
April 30th purchased food supplies from acme super markets on account $6000.
April 30th paid acme super market on account $32,700
April 30th paid utilities bill $2000
April 30th paid telephone bill $1,200

Adjustment information for the end of April is provided below.
(a) Office supplies remaining on hand $100
(b) Food supplies remaining on hand $8000
(c) Insurance expired during the month of April $1,500
(d) Depreciation on the fishing boats for the month of April $1000
(e) Wages Earned, but not yet paid, at the end of April $500.

Assignment:
1. Enter the 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 30th on page 3. and the remaining entries on page 4.

1. 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 ac=
Count
Titles and account numbers in the general ledger accounts)
1. Prepare a trial balance on a work sheet.
2. Complete the work sheet.
3. Prepare the income statement
4. Prepare the statement of owners equity.
5. Prepare the balance sheet,
6. Journalize the adjusting entries
7. Post the adjusting entries to the general ledger
8. Journalize the closing entries
9. Post the closing entries to the general ledger
10. Prepare a post closing balance.

My problem actually with this problem is the transaction on the 2nd trasaction on the 30th: Paid Acme super MArket on acount. I don't know which trasactions are involved and which one should be credited and debited. Also, I have a problem with the last transaction on the 2nd: Purchased 10 fishing boats on account for 60000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Arrangements were made to pay for the boats in July.

Please do not tag onto someone else's post. It really isn't much fun scrolling through and looking at a bunch of stuff, just to find someone else's post at the end.

I've moved yours to its own thread.

Quote:

My problem actually with this problem is the transaction on the 2nd trasaction on the 30th: Paid Acme super MArket on acount. I don't know which trasactions are involved and which one should be credited and debited.

Don't worry about other transactions involved. All you are doing is paying off the payable. It would be like making a payment on your credit card - doing so would reduce your cash and would reduce the balance on your bill, and it wouldn't matter what was on that bill. Paying someone on account is always a debit to the Accounts Payable (to reduce the balance since it's no longer owed) and a credit to Cash (since it was paid). The fact that it's Acme isn't relevant, nor is what the charge was for to start with.

Quote:

Also, I have a problem with the last transaction on the 2nd: Purchased 10 fishing boats on account for 60000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. Arrangements were made to pay for the boats in July.

You have to ignore all the irrelevant jibberish. The important parts are that a fishing boat was purchased for 60,000 (you purchased an asset for that amount), and that it will be paid in July, meaning you still owe for it. The stuff about the donation is not relevant, partly because it's not interfering with the useful life, and partly cause it's 5 years in the future. And the estimated life is only relevant to the depreciation, which is not connected with this entry, and also which they outright gave you in the adjusting entry part so you don't even need that info.