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The general's favorite fishing hole answers

31/10/2020 Client: papadok01 Deadline: 2 Day

Comprehensive Problem 1 Part 7: Trial Balance and Work Sheet Month 2

Bob Night opened "The General's Favorite Fishing Hole." The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for 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.

Ledger balances for The General's Favorite Fishing Hole at the end of May are as follow:

These adjustments are needed for part 1 and 2

Part 1:

3. Prepare a trial on a work sheet

4. Complete the work sheet below. Be sure to list the items in order of their liquidity, starting with Assets, Liabilities and then Owner's Capital.

Part 2:

5. Journalize the adjusting entries on page 8 of the general journal. Do not enter the posting references until you complete part 6.

6. Post the adjusting entries to the general ledger. If an amount box does not require an entry, leave it blank. After posting to the general ledger, go to part 5 and complete the posting in the general journal.

Part 3: Complete

7. Prepare the income statement.

8. Prepare the statement of owner's equity. The beginning capital balance was $138,250 and investments during the month were $600,000.

9. Prepare the balance sheet.

Part 4:

10. Journalize the closing entries on page 9 of the general journal. If an amount box does not require an entry, leave it blank. Do not enter the posting references until you complete part 11.

11. Post the closing entries to the general ledger. If an amount box does not require an entry, leave it blank. After posting to the general ledger, go to part 10 and complete the posting.

12. Prepare a post-closing trial balance. Be sure to list the items in order of their liquidity, starting with Assets, Liabilities and then Owner's Capital. If an amount box does not require an entry, leave it blank.

Adjustment information at the end of May is provided below.

(a) Total vending machine sales were $2,300 for the month of May.

(b) Straight-line depreciation is used for the 10 boats purchased on April 2 for $60,000. The useful life for these assets is five years and there is no salvage value. A full month’s depreciation was taken in April on these boats. Straight-line depreciation is also used for the two boats purchased in May. Make one adjusting entry for all depreciation on the boats.

(c) Straight-line depreciation is used to depreciate the surround sound system.

(d) Straight-line depreciation is used to depreciate the big screen TV.

(e) Straight-line depreciation is used for the building purchased in May.

(f) On April 2, Night paid $9,000 for insurance during the six-month camping season. May’s portion of this premium was used up during this month.

(g) Night received his May issues of Fishing Illustrated, Fishing Unlimited, and Fish Master.

(h) Office supplies remaining on hand, $150.

(i) Food supplies remaining on hand, $5,925.

(j) Wages earned, but not yet paid, at the end of May, $6,000.

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