Chapter 3 Week of October 11th Homework Assignment Smoky Mountain Lodge uses the accrual method of accounting, not the cash method of accounting, and recognizes revenue and expenses using the Matching Principle. On December 31, 20x1, Smoky Mountain Lodge's Unadjusted Trial Balance was as follows: 15,500 6,000 4,000 6,500 2,500 725,000 130,000 66,500 SMOKY MOUNTAIN LODGE Unadjusted Trial Balance December 31, 20x1 Cash Accounts Receivable Notes Receivable Supplies Prepaid Insurance Building Accumulated Depreciation - Building Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries & Wages Payable Notes Payable John Olsen Capital Lodging Revenue Salaries & Wage Expense Rent Expense Room Linens & Supplies Expense Insurance Expense Utilities Expense Miscellaneous Expenses TOTALS 63,000 7,000 5,000 200,000 428,000 105,000 53,000 2,000 23,000 7,000 25,000 2,000 938,000 $ $ 938,000 During December 20x1, the Smoky Mtn. Lodge accounting records needed the following year-end adjustments: 1) Unexpired insurance at December 31: $1,000 2) Supplies on hand at December 31st: $500 3) Depreciation of building for the entire year: $10,000 Depreciation on equipment is the remaining book value 4) Acme Company paid $5,000 on December 30 for February 2020 lodging reservations that has not been recorded to the accounting records. 5) Smoky salaries and wages for the week are $6,000 for a six-day work week for Monday through Saturday. December 31+ is a Friday and will be paid the following Friday. 6) Lodging revenue earned for December 31st reservations not collected or recorded yet: $3,000 7) Smoky collected Vernon Co.'s outstanding lodging balance due since November 28th: $4,000 In addition to the General Ledger accounts listed on the Unadjusted Trial Balance, Smoky Mtn. Lodge also uses the following General Ledger accounts: Depreciation Expense Unearned Lodging Revenue Instructions: 1) Record each business transaction to the General Journal Template provided using proper journal entry structure including a brief entry explanation. Leave a line space between each journal entry. 2) Post the General Journal entries to the appropriate General Ledger accounts using the General Ledger Template. Maintain a running balance for each General Ledger account. 3) Prepare an Adjusted Trial Balance as of December 31, 20X1. Note: The Adjusted Trial Balance is used to prepare the period's final Income Statement and Balance Sheet. 4) Determine Smoky Mountain Lodging's Net Operating Income (Loss) for December 31, 20X1. Type your answer in the box provided on the bottom of the Adjusted Trial Balance Template. Place your name on all submitted documents. Submit the General Journal, General Ledger, and Unadjusted Trial Balance as separate submissions. Work product neatness counts in the workplace and will count for class submissions too
