Andrea decides to create a new sole proprietorship, Better Boat Company, or BBC for short. Better Boat Company is a service-based company that rents canoes for use on local lakes and rivers. The business began operations on November 1, 2018 and completed the following transactions in that first month. A (Click the icon to view the November transactions.) (Click the icon to view the transaction analysis chart from November.) In addition, Better Boat Company completed the following transactions for December. (Click the icon to view the December transactions.) Read the requirements Requirement 1. Journalize the transactions for both November and December, using the following accounts: Cash; Accounts Receivable: Office Supplies; Prepaid Rent; Land; Building, Canoes, Accounts Payable; Utilities Payable: Telephone Payable; Unearned Revenue; Notes Payable; Ward, Capital; Ward, Withdrawals; Canoe Rental Revenue; Rent Expense: Utilities Expense; Wages Expense; and Telephone Expense. Explanations are not required. (Hint: For November transactions refer to the transaction analysis chart for November.) (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1: Received $23,000 cash to begin the company and gave capital to Andrea Ward. Date Accounts Debit Credit Nov. 1 Choose from any list or enter any number in the input fields and then click Check Answer. ? 38 parts Clear All Check Answer remaining A (Click the icon to view the November transactions.) Click the icon to v More Info Nov. 1 Received $23,000 cash to begin the company and gave capital to Andrea Ward. 2 Signed a lease for a building and paid $1,900 for the first month's rent 3 Purchased canoes for $4,500 on account. 4 Purchased office supplies on account, $500. 7 Earned $1,000 cash for rental of canoes. 13 Paid $1,100 cash for wages. 15 Ward withdrew $100 cash from the business. 16 Received a bill for $200 for utilities. (Use separate payable account.) 20 Received a bill for $190 for cell phone expenses. (Use separate payable account.) 22 Rented canoes to Tender Time on account, $3,200. 26 Paid $2,400 on account related to the November 3 purchase. 28 Received $1,800 from Tender Time for canoe rental on November 22. 30 Ward withdrew cash of $150 from the business. More Info Dec. 1 Andrea contributed land on the river (worth $70,000) and a small building to use as a rental office (worth $175,000) in exchange for capital 1 Prepaid $5,700 for three months' rent on the warehouse where the company stores the canoes. 2 Purchased canoes signing a note payable for $5,280. 4 Purchased office supplies on account for $200. 9 Received $4,700 cash for canoe rentals to customers. 15 Rented canoes to customers for $3,400, but will be paid next month. 16 Received a $350 deposit from a canoe rental group that will use the canoes next month. 18 Paid the utilities and telephone bills from last month. 19 Paid various accounts payable, $1,000. 20 Received bills for the telephone (5270) and utilities (5290) which will be paid later. 31 Paid wages of $2,200. 31 Ward withdrew cash of $600 from the business. (Click the icon to view the transaction analysis chart from November.) i Reference Assets Cash + A/R + Off. + Canoes = A/P Liabilities Equity + Util. + Tele. + Ward, - Ward, + Rent Rent - Util Pay. Pay Capital Withdr. Rev. Exp. Exp. + 23,000 - 1,900 Sup. Wage - Tele. Exp. Exp. + + + 1 23,000 + 2 (1,900) + + + 11 + + + Bal. 21,100 + 0 + + 0 + 0 = 0 + 0+ 0 + 23,000 - 0 + 0 - 1,900 - 0 0 0- 0 + 4,500 + 4,500 + + + + + 32 Bal. 21,100 + 0 + 0 + + 0 + 23,000 - 0 + 0 - 1,900 - 0 - 0 - 0 0 + 500 4,500 = 4,500 + 500 4 + + + + + + 0 + 500+ 4,500 = 5,000 + 0+ 0 + 23,000 - 0 + 0 0 - Bal. 21,100 + 7 1,000 0 - 1,900 - 1,000 + + + + + + + Bal. 22,100 + 0 + 500+ 4,500 = 5,000 + 0 + + 0 + 23,000 - 0 + 1,000 - 1,900 - 0 - 0 - 0 (Click the icon to view the transaction analysis chart from November.) i Reference 13 (1,100) + + + 1,100 + + + + 0 + 500+ 4,500 = 5,000 + 0 + 0 + 23,000 - 0 - 1,100 - 0 0 + 1,000 - 1,900 - 100 Bal. 21,000+ 15_(100) + Bal. 20,900 + + + + + + + 0 + 500+ 4,500 = 5,000 + 0+ 0 + 23,000 - 100 + 1,000 - 1,900 - 0 0 - 1,100 - 200 16 200 + + + + + + Bal. 20,900 + 0 + 500+ 4,500 = 5,000 + 200 + 100 + 1,000 - 1,900 - 200- 1,100 - 0 + 23,000 - 190 + 190 + + + + + 20 Bal. 20,900 + 4,500 = 5,000 + 200 + 190 + 23,000 - 190 0 + 500+ 3,200 + 100 + 1,000 - 1,900 - 200- 1,100 - 3,200 22 + + + + + + 500 + 4,500 = 5,000 + 200 + 190 + 23,000 - 100 + 4,200 - 1,900 - 200 - 1,100 - 190 Bal. 20,900 + 3,200 + 26 (2,400) + (2.400) + + + + + Bal. 18,500 + 3,200 + 500+ 4,500 = 2,600 + 200 + 190 + 23,000 - 100 + 4,200 - 1,900 - 200- 1,100 - 190 28_1,800 (1,800) + + 1,400 + 500 + 4,500 = 2,600 + 200 + 190 + 23,000 - 200 - 1,100 - 190 Bal. 20,300 + 30 (150) + 20,150 Ball + + + 100 + 4,200 - 1,900 - 150 + 250 4,200 1,900 1,400 500 4,500 2,600 200 190 23,000 200 1,100 190 + + 26,550 26,550 Print Done i Requirements - X 1. Journalize the transactions for both November and December, using the following accounts: Cash; Accounts Receivable; Office Supplies; Prepaid Rent; Land; Building; Canoes, Accounts Payable; Utilities Payable; Telephone Payable; Unearned Revenue; Notes Payable; Ward, Capital; Ward, Withdrawals: Canoe Rental Revenue; Rent Expense: Utilities Expense; Wages Expense; and Telephone Expense. Explanations are not required. (Hint For November transactions refer to the transaction analysis chart for November.) 2. T-accounts have been opened for you. Post the journal entries to the T-accounts, and calculate account balances. Use the transaction dates as posting references 3. Prepare a trial balance as of December 31, 2018. 4. Prepare the income statement of Better Boat Company for the two months ended December 31, 2018 5. Prepare the statement of owner's equity for the two months ended December 31, 2018 6. Prepare the balance sheet as of December 31, 2018. 7. Calculate the debt ratio for Better Boat Company at December 31, 2018