BFIN $141$ Case #$1($Term Test #$1$ Review$)$

Question $1$

Arctic Fishing Tour Company has been in business for several years and provides fishing tours to customers. Following are Arctic$$s transactions for $2023.$

Jan $5$ Joe Cold, owner of the company, invests another $$25,000$ in exchange for Common Shares.

Feb $1$ Arctic purchased a new boat for $$24,000.$ They paid $$6,000$ and the remainder was on a note payable. The note is due in one year and carries an interest rate of $8\%$ per year.

Feb $1$ Arctic paid $$1,200$ for the insurance on the new boat. It is for a one$-$year term and is effective immediately.

Apr $15$ Paid $$5,000$ cash for supplies.

Jul $15$ Arctic provided tours to customers for a total of $$22,000.$ All customers paid cash.

Jul $18$ A customer with an outstanding balance from last year paid the $$500.$

Jul $31$ Arctic paid their staff $$2,900$ in wages.

Aug $7$ Provided a $$6,000$ tour that was booked through Expedia. Expedia will pay Arctic next month.

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

Aug $28$ Provided a $$9,000$ tour. $$5,000$ was collected in cash and the remainder was on account.

Aug $31$ Arctic paid their staff $$3,100$ in wages.

Sep $1$ Expedia paid for the tour from Aug $7$th$.$

Sep $15$ Paid the amount owing for the propeller repair from Aug $12$th$.$

Oct $15$ A corporate customer prepays $$12,000$ for a series of four tours to be provided in the winter. The first tour will be next month, in November, with a tour each month until February $2024.$

Dec $25$ Declared and paid a $$2,700$ dividend to Joe.

Arctic records adjusting entries only at the year$-$end on December $31,2023$:

Dec $31$ Record $$2,200$ in depreciation for the new boat purchased on February $1$st$.$

Dec $31$ Record the $$1,320$ of interest accrued on the notes payable from the purchase of the boat.

Dec $31$ Record the $11$ months of boat insurance that has expired.

Dec $31$ The unadjusted balance of supplies at December $31$st is $$6,000.$ An inventory of supplies shows $$1,200$ on hand.

Dec $31$ Record the revenue earned to Dec $31$st from the corporate customer from October $15$th$.$

Question $1$

a$)$ Prepare the journal entries for Arctic Fishing Tour Company for $2023$

b$)$ Record the December $31$st adjusting journal entries for Arctic Fishing Tour Company.