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Delightful Dar's Daring Dunes Transactions 4. 5. On May 1, Delightful Dar bought some new ATV's from Jack Cat's ATV's. Last month she sold all

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Delightful Dar's Daring Dunes Transactions 4. 5. On May 1, Delightful Dar bought some new ATV's from Jack Cat's ATV's. Last month she sold all of her ATV's because they were worn out. She purchased a total of 34 ATV's for $160,003. She paid $33,333 in cash and put the remaining balance on account. All balances on account must be fully paid within 10 months. The ATV's have an expected life of 3.5 years and a salvage value of $19,555. They will be depreciated using the straight-line method. 2. On May 3, Delightful Dar drives in the big bucks!! Thirty-nine people decided to rent those niew ATV's. Dar charges her clients $33.95 an hour to rent the ATV's. A total of 80 rental hours was recorded on this day (60 hours were paid in cash and the rest was put on client accounts). 3. On May 5, Delightful Dar decided to buy the land next to her business for $56,789 cash. On May 9, Delightful Dar realized that she needed some extra supplies. She purchased $3,210 worth of supplies on account from Dirt Cheap Office Products. On May 13, Delightful Dar rents ATV's to her clients for 88 hours at $34.50 an hour. All of her clients paid cash for a change!! 6. On May 16, Delightful Dar went to the bank and talked to Macy Money about a loan. Jack, from Jack Cat's ATV's, needed $72,000 of the balance due from Dar. Therefore, Dar got a 4-year loan from the bank in the amount of $72,000 to pay off some of her balance from Jack Cat's ATV's. The loan will be paid off in 8 equal installments due on November 16h and May 16" for each of the next 4 years. Macy will charge 14.4% interest on the loan. Interest will be paid with each installment. (Note: there are two transactions occurring here, first recognize the loan and then pay your liability). 7. On May 18, Delightful Dar rents ATV's to her clients for 92 hours at $34.75 an hour (Dar loves to raise her prices on a regular basis!!). Her clients paid for 52 hours in cash and the other 40 hours were added to client accounts. On May 19. Delightful Dar paid Bailey's Bulletin $681 for informative flyers. The flyers contain information about Dar's new ATV's and are expected to increase Dar's rental revenues by 52% next month!! Dar is old school and prefers to advertise using flyers. Dar expenses this immediately On May 21, Delightful Dar received cash from some of her clients who had put their ATV rental fees on account. She received a total of $1,111 from client accounts. 10. On May 23, Delightful Dar decided to hire Macy Money and Bailey from Bailey's Bulletin to work part-time over the next few weeks. She thought they would be good for fit for her business since they seem to know her well. Their duties will include assisting people to their ATV's. distributing flags, and cooler checks (no soft drinks allowed, beer/wine only!!). It is expected that they will work a total of 48 hours during the rest of this month at a rate of $15.75 an hour. 8. 9. a 11. On May 24, Delightful Dar found out that a couple of her clients had trouble with the ATV's they rented on May 13th, but didn't say anything at the time of rental. Therefore, Dar decided to refund them for a total of 6 hours. She wrote out and mailed the check today. 12. On May 25, Delightful Dar records rental revenue from the ATV's of $1,580. Eighty percent of that was paid in cash at the time of rental. The rest was added to customer accounts. 13. On May 28, Delightful Dar decides to pay dividends in the amount of $444. 14. On May 30, Delightful Dar pays Macy & Bailey a total of $777 cash for their excellent work. Adjustments On May 31, you notice the following: a) You have used up one months worth of insurance (On March 1. Dar purchased a 6-month insurance policy for $16,194) b) You need to recognize interest accumulated on the note payable c) You need to recognize depreciation on the building. You bought the building on February 15, last year. It has an expected life of 35 years and you use straight-line depreciation. d) You have accrued salaries of $945 e) You need to recognize depreciation on the ATV's f) You have only $1,239 worth of supplies on hand g) You need to recognize/accrue federal income taxes of $41. The Accounting Cycle de Analyze & Journalize transactions Prepare an adjusted trial balance Post to ledger accounts 7) Prepare the financial statements 4) Prepare a trial balance 08) Journalize and post closing entries Journalize and post adjusting entries 9) Prepare a post-closing trial balance

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