ACC 201 Comprehensive Problem:

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. The chart of accounts for the camping operations is provided below.

Requirements for assignment: You are working for Hensley Accounting and are in charge of the accounting for ?The General?s Favorite Fishing Hole? To complete this you must do the following.

Enter the transactions in a general journal.

Post the entries to the general ledger

Prepare a trial balance on a worksheet

Complete the worksheet

Journalize the adjusting entries on page 5

Post the adjusting entries to the general ledger

Prepare an Income Statement

Prepare a Statement of Owner?s Equity

Prepare a Balance Sheet

Journalize the closing entries (pages 5 and 6)

Post the closing entries to the general ledger

Prepare a post-closing trial balance.

Repeat this cycle for the May transactions.

The General?s Favorite Fishing Hole

Chart of Accounts

Assets:

101 Cash

122 Accounts Receivable

142 Office Supplies Inventory

144 Food Supplies Inventory

145 Prepaid Insurance

145 Prepaid Subscriptions

161 Land

171 Buildings

171.1 Accumulated Depreciation - Buildings

181 Fishing Boats

181.1 Accumulated Depreciation ? Fishing Boats

182 Surround Sound System

182.1 Accumulated Depreciation ? Surround Sound System

183 Big Screen TV

183.1 Accumulated Depreciation ? Big Screen TV

Liabilities:

202 Accounts Payable

219 Wages Payable

Owner?s Equity:

311 Bob Night, Capital

312 Bob Night, Drawing

313 Income Summary

Revenue:

401 Registration Fees

404 Vending Commission Revenue

Expenses:

511 Wages Expense

512 Advertising Expense

521 Rent Expense

523 Office Supplies Expense

524 Food Supplies Expense

525 Telephone Expense

533 utilities Expense

535 Insurance Expense

536 Postage Expense

537 Repair Expense

540 Depreciation Expense ? Buildings

541 Depreciation Expense ? Surround Sound System

542 Depreciation Expense ? Fishing Boats

543 Depreciation Expense ? Big Screen TV

546 Satellite Programming Expense

548 Subscription Expense

The following took place during April 2015

4/1/15: Night invested cash in business of $90,000

4/1/15: Paid insurance premium of six-month camping season of $9,000

4/2/15: Paid rent for lodge and campgrounds for the month of April - $40,000

4/2/15: Deposited Registration fees - $35,000

4/2/15: Purchased 10 fishing boats of 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 for the boats in July.

4/3/15: Purchased food supplies from Acme Super Market on account - $7,000

4/5/15: Purchased Office Supplies from Gordon Office Supplies on account - $500

4/7/15: Deposit Registration fees - $38,600

4/10/15: Purchased food supplies from Acme Super Market on account - $8,200

4/10/15: Paid wages to fishing guides - $10,000

4/14/15: Deposited registration fees - $30,500

4/16/15: Purchased food supplies from Acme Super Market on account - $9,000

4/17/15: Paid wages to fishing guides - $10,000

4/18/15: Paid Postage - $150

4/21/15: Deposited Registration fees - $35,600

4/24/15: Purchased food supplies from Acme Super Market on account - $8,500

4/24/15: Paid wages to fishing guides - $10,000

4/28/15: Deposited registration fees - $32,000

4/29/15: Paid wages to fishing guides - $10,000

4/30/15: Purchased food supplies from Acme Super Market on account - $6,000

4/30/15: Paid Acme Super Market on account - $32,700

4/30/15: Paid Utilities bill - $2,000

4/30/15: Paid Telephone Bill - $1,200

4/30/15: Bob Night withdrew cash for personal use - $6,000

Adjustment information for the end of April is provided below

Office Supplies remaining on hand = $100

Food Supplies remaining on hand = $8,000

Insurance expired during the month of April - $1,500

Depreciation on the fishing boats for the month of April - $1,000

Wages earned but not yet paid at the end of April - $500

The following took place during May 2015

5/1/15: In order to provide snacks for guests on a 24-hour basis, Night signed a contract with Snack Attack. Snack Attack will install vending machines with food and drinks and pay a 10% commission on all sales. Estimated payments are made at the beginning of each month. Nigh received a check for $200, the estimated commission on sales for May.

5/2/15: Night purchased a surround sound system and big screen TV with a digital satellite system for the guest lounge. The surround sound system cost $3,600 and has an estimated useful life of five years and no salvage value. The TV cost $8,000, has an estimated useful life of 8 years, and has a salvage value of $800. Night paid cash for both items.

5/2/15: Paid for May?s programming on the new digital satellite system - $125

5/3/15: Night?s office manager returned $100 worth of office supplies to Gordon?s Office Supply. Night received a $100 reduction on the account.

5/3/15: Deposited registration fees - $52,700

5/3/15: Paid Rent for lodge and campgrounds for the month of May - $40,000

5/3/15: In preparation for the purchase of a nearby campground, Night invested an additional $600,000

5/4/15: Paid Gordon Office Supply on account - $400

5/4/15: Purchased the assets of a competing business and paid cash for the following: Land - $100,000, Lodge - $530,000, Fishing Boats - $9,000. The lodge has a remaining useful life of 50 years and a $50,000 salvage value. The boats have remaining lives of five years and no salvage value.

5/5/15: Paid May?s insurance premium on the new camp - $1,000

5/5/15: Purchased food supplies from Acme Super Market on account - $22,950

5/5/15: Purchased office supplies from Gordon Office Supplies on account - $1,200

5/7/15: Night paid $40 EACH for one-year subscriptions to Fishing Illustrated, Fishing Unlimited, and Fish Master. The magazines are published monthly.

5/10/15: Deposited registration fees - $63,000

5/13/15: Paid wages to fishing guides - $30,000 (HINT: don?t forget the wages payable)

5/14/15: A guest became ill and was unable to stay for the entire week. A refund was issued in the amount of $1,000

5/17/15: Deposited registration fees: $63,000

5/19/15: Purchased food supplies from Acme Super Market on account $18,400

5/21/15: Deposited registration fees - $63,400

5/23/15: Paid $2,500 for advertising spots on National Sports Talk Radio

5/25/15: Paid repair fee for damaged boat - $850

5/27/15: Paid wages to fishing guides - $30,000

5/28/15: Paid $1,800 for advertising spots on billboards

5/29/15: Purchased food supplies from Acme Super Market on account - $14,325

5/30/15: Paid utilities bill - $3,300

5/30/15: Paid telephone bill - $1,800

5/30/15: Paid Acme Super Market on account - $47,350

5/31/15: Bob Night withdrew cash for personal use - $7,500

Adjustment information for the end of May is provided below

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

Straight-line depreciation is used for the 10 boats purchased on April 2 for $60,000. The useful life of 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.

Straight-line depreciation is used to depreciate the surround sound system

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

Straight line depreciation is used for the building purchased in May.

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.

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

Office supplies remaining on hand - $150

Food supplies remaining on hand - $5,925

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

NOTE: All worksheets, trial balances, and financial statements must be in proper form. Example?the header for the Balance Sheet should look like this

The General?s Favorite Fishing Hole

Balance Sheet

For the Month Ended April 30, 2015

There are additional journal, ledger, worksheet and statement forms available. A supply has been attached here, but in case of error or misplacement, you can get additional forms there.

Trial Balance Statement of Owner's Equity Income Statement Account Name Date Account Name Date Account Name Date Explanation Explanation Explanation PR PR PR Debit Account No. Credit Balance Debit Account No. Credit Balance Debit Account No. Credit Balance GENERAL JOURNAL Date Account Titles and Explanation PR Debit Credit Balance Sheet Worksheet Unadjusted Trial Balance Account Title DR Adjusted Trial Balance Adjustments CR Dr Cr DR Income Statement CR DR Balance Sheet CR DR CR