comprehensive problem 1 the accounting cycle 496632

Bob Night opened The General 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. The chart of accounts for the camping operations is provided below.

The General’s Favorite Fishing Holes

Charts of Accounts

Assets

101 Cash

142 Office supplies

144 food supplies

145 preparid insurance

181 fishing boats

181.2 accum. depr. fishing boats

Liabilities

202 accounts payable

219 wages payable

owner’s 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 supplies expense

524 food supplies expense

525 telephone expense

533 utilities expense

535 insurance expense

536 postage expense

542 depr. exp. fishing boats

The following transactions took place during April 20—-

Apr 1 night invested cash in business, 90,000

Apr 1 paid insurance premium for camping season, 9,000

Apr 2 paid rent for lodge and campgrounds forthemonth of apr 40,000

Apr 2 deposited registration fees, 35,000

Apr 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. arrangement were made to pay for the boats in July.

Apr 3 purhcased food supplies from acme super market on acount, 7,000

Apr 5 purchase office supplies from gordon office supplies on account, 500

Apr 7 deposited registration fees, 38,600

Apr 10 purchase food supplies from acme super market on account, 8,200

Apr 10 paid wages to fishing guides, 10,000

Apr 14 deposited registration fees, 30,050

Apr 16 purchased food supplies from acme super market on account, 9,000

Apr 17 paid wages to fishing guides, 10,000

Apr 18 paid postage 150

Apr 21 deposited registration fees, 35,600

Apr 24 purchased food supplies from acme super market on acct, 8,500

Apr 24 paid wages to fishing gudies, 10,000

Apr 28 deposited registration fees, 32,000

Apr 9 paid wages to fishing guides, 10,000

Apr 30 purchased food supplies from a acme super market on account, 6,000

Apr 30 paid acme super market on account, 32,700

Apr 30 paid utilities bill, 2,000

Apr 30 paid telephone bill, 1,200

Apr 30 Bob night withdrew cash for personal use, 6,000

Adjustment information for the end of April is provided below

a. office supplies remaining on hand, 100

b. food supplies remaining on hand, 8,000

c. insurance expired during the month of April, 1,500

d. depreciation on the fishing boats for the month of April, 1,000
e. wages earned, but not ye paid, at the end of april, 500.
Required:

1. enter 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 30 on page 3, and the remaining entires for April 30 on page 4.

2. 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 account titles and account number in the general ledger accounts.

3. prepare a trial balance on a work sheet

4. complete the work sheet.

5. prepare the income statement.

6. prepare the statement of owner’s equity.

7. prepare the balance sheet.

8. journalize the adjusting entries (page5)

9. post the adjusting entries to the general ledger.

10. journalize the closing entries (pages 5 and 6).

11. post the closing entries to the general ledger.

12. prepare a cost closing trail balance.