Critical Thinking Assignment 2

Cody Mountain Sports is an outdoor sporting goods guiding service located in northern Wyoming. Cody Mountain Sports (CMS) primarily provides guiding for common outdoor sporting activities such as rock climbing, hiking, and skiing. CMS completed the following transactions during March of 2021:

Mar. 1

CMS began operations by receiving $100,000 in cash. The business issued shares of common stock in exchange for this contribution.

Mar. 1

CMS paid $1,200 cash for a 12 month insurance policy. The policy begins Mar. 1.

Mar. 4

CMS guided a small rock climbing trip, receiving $20,000 payment in cash.

Mar. 15

CMS guided a hiking adventure, billing the customer $3,000 and receiving a promise of payment within one week.

Mar. 18

Accrued employee salaries of $10,000.

Mar. 19

Purchased fuel for vehicles on account, $1,000.

Mar. 22

Collected $3,000 cash from customer on account.

Mar. 24

Paid rent on their property, $4,000 cash.

Mar. 27

Paid $1,000 cash on account.

Mar. 31

Cash dividends of $2,500 were paid to stockholders.

Mar. 31	Accrued Wages Expense of $2,000.
Mar. 31	One month of prepaid insurance has expired.

Requirements:

1. Journalize the adjusting entries and post these entries to the t-accounts.
2. Prepare an adjusted trial balance as of March 31^st, 2021.
3. Prepare an income statement for CMS as of March 31^st, 2021.
4. Prepare a statement of retained earnings for the month ended March 31^st, 2021.
5. Prepare a balance sheet for the month ended March 31^st, 2021.
6. Journalize all closing entries and post to the t-accounts.
7. Prepare a post-closing trial balance as of March 31^st, 2021.