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Enchanted forest a large campground in south carolina

01/05/2021 Client: muhammad11 Deadline: 2 Day

nchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Most guests of the campground pay at the time they check out, and the amounts collected are credited to Camper Revenue. The following information is available as a source for preparing the adjusting entries at December 31:

Enchanted Forest invests some of its excess cash in certificates of deposit (CDs) with its local bank. Accrued interest revenue on its CDs at December 31 is $400. None of the interest has yet been received. (Debit Interest Receivable.)

A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be computed at an annual rate of 8.5 percent and is payable when the loan becomes due.

Depreciation on buildings owned by the campground is based on a 25-year life. The original cost of the buildings was $600,000. The Accumulated Depreciation: Buildings account has a credit balance of $310,000 at December 31, prior to the adjusting entry process. The straight-line method of depreciation is used.

Management signed an agreement to let Boy Scout Troop 538 of Lewisburg, Pennsylvania, use the campground in June of next year. The agreement specifies that the Boy Scouts will pay a daily rate of $15 per campsite, with a clause providing a minimum total charge of $1,475.

Salaries earned by campground employees that have not yet been paid amount to $1,250.

As of December 31, Enchanted Forest has earned $2,400 of revenue from current campers who will not be billed until they check out. (Debit Camper Revenue Receivable.)

Several lakefront campsites are currently being leased on a long-term basis by a group of senior citizens. Six months’ rent of $5,400 was collected in advance and credited to Unearned Camper Revenue on October 1 of the current year.

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