Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2-1B - Basic Journal Entries - New Company Fred McCarthy started his company, Cheapo Tours to take customers to the Grand Canyon from Las Vegas.

image text in transcribed

2-1B - Basic Journal Entries - New Company Fred McCarthy started his company, Cheapo Tours to take customers to the Grand Canyon from Las Vegas. The company began operations in March, 2017. The following transactions occurred during the company's first month: March 1 Fred invested $10,000 cash and a van valued at $7,500 in exchange for 50,000 common shares. March 3 Paid $1,000 cash to advertise online. March 5 Purchased equipment on account: $3,000. March 6 Purchased a second van for $8,000. Paid $2,000 and took the rest as a car loan. March 15 Took first tour group to see the Grand Canyon. The trip was a success. Customers paid $1,000 each for their tour. In total, thirteen customers on the tour paid $12,000. One customer was not able to pay, but promised to pay his $1,000 by the end of the month. March 16 Joe paid his employees' salaries of $3,000. March 17 Purchased fuel for the vehicles: $500 March 19 Paid $800 to repair a broken window on one of the vans. March 20 Paid for the March 5 equipment purchase. March 22 Received a utilities bill: $200. Did not pay yet. March 25 Received the last $1,000 from the March 15 tour. March 31 Took a second tour group of 15 people. Each paid $1,000. March 31 Paid employees' salaries of $3,000. March 31 Took a dividend of $5,000. Required: Record all necessary journal entries based on the transactions above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Payroll Accounting 2020

Authors: Jeanette Landin

6th Edition

1260943895, 9781260943894

More Books

Students also viewed these Accounting questions

Question

Describe the linkages between HRM and strategy formulation. page 80

Answered: 1 week ago