Arctic Fishing Tour Company has been in business for a number of years and in this year of expansion, needs your help to record the transactions for 2022. This company provides fishing tours to customers. Due to icy waters, summer is their busiest time of year.

Note: you may need to add some new accounts

Entries to be recorded in a Horizontal Statement Model:

January 1 Purchase new fishing equipment for $6000. They plan to use it for the next 4 years then sell it for $500.

January 15 Joe Cold, Owner of the company, invests another $15,000

February 1 Pays for the one year lease on their boat. $24,000.

June 1 Borrows $4,000 at 8%. Principe and interest for this notes payable is due in 10 months.

June 15 Buys $5000 of supplies

June 20 Last year a customer prepaid for a private tour. The tour was preformed today

July 15 Preformed $22,000 of tours. All customers pay cash.

July 18 The customer who owed us money from last year, finally paid the $500

July 31 Paid $2,900 in wages

Aug 7 Preformed a $6000 tour that was booked through Expedia. Expedia will pay next month

Aug 12 The prop of the boat was damaged on the last tour. The repair was $700 and was paid on account.

Aug 28 Completed a $9,000 tour. $5000 was collected in cash, the remainder was on account.

Aug 31 Paid $3,100 in wages

Sept 1 Expedia paid for the tour taken on Aug 7

Sept 15 Paid the amount owning for the prop repair (refer to Aug 12)

Dec 15 A customer prepays $3000 for a tour to be preformed next summer

Dec 25 Declared and paid a $2700 dividend

Adjusting entries on T-Accounts:

Dec 31 An inventory of supplies shows $250 on hand

Dec 31 Adjust prepaid rent

Dec 31 Record Depreciation

Dec 31 Accrue interest on the Notes Payable (round to the nearest dollar)

Part C: Create the income statement, statement of changes in Stockholders equity and balance sheet

Part D: The Following are industry averages. Calculate the ratio for Arctic Fishing, explain what the ratio measures and how Arctic fishing compares.

Debt to Asset Ratio = 40% Return on Asset Ratio = 15% Return on Equity Ratio = 18%