During this period, The Generals Favorite Fishing Hole engaged in the following transactions. These transactions require an expansion of the chart of accounts as shown below.

Assets:

101Cash

122 Accounts Receivable

142 Office Supplies

144 Food Supplies

145 Prepaid Insurance

146 Prepaid Subscriptions

161 Land (Fixed Asset, Detail Type: Land)

171 Buildings (Fixed Asset, Detail Type: Building)

171.1Accumulated Depreciation Buildings (Subaccount of Buildings)

181Fishing Boats

181.1Accumulated Depreciation Fishing Boats

182 Surround Sound System

182.1Accumulated Depreciation Surround Sound Sys.

183 Big Screen TV

183.1 Accumulated Depreciation Big Screen TV

Liabilities

202 Accounts Payable

Owners Equity

311 Bob Night, Capital

312 Bob Night, Drawing

313 Income Summary

Revenues

401 Registration Fees

404 Vending Commission Rev

Expense:

404 Expenses

511 Wages Expense

512 Advertising Expense

521 Rent Expense

523 Office Supplies Expense

524 Food Supplies Expense

525 Phone Expense

533 Utilities Expense

535 Insurance Expense

536 Postage Expense

537 Repair Expense

540 Depreciation Expense Buildings

541 Depreciation Expense Surround Sound Sys.

542 Depreciation Expense Fishing Boats

543 Depreciation Expense Big Screen TV

546 Satellite Programming Expense (Direct TV)

Enter the February transactions February:

1 In preparation for the purchase of a nearby campground, Night invested $600,000.00 into the business. The easiest to record this transaction is in the general journal.

1 Paid rent for lodge and campgrounds for the month of May, $40,000

2 Received registration information from University of Minnesota. $50,000 (Make sure that the total cost appears on the invoice so that is it recorded in Accounts Receivable.)

2 The U of M sent a check to pay their two outstanding invoices. The total of the check is $90,000.00. This transaction should decrease accounts receivable and increase Cash.

3 Purchased from Gordon Office Supply on account, $400.

3 Received registration information from Winona State University 50,000. They included payment Check #6945 with the registration. Create an invoice and record the payment.

3 Purchased the assets of a competing business, Voyager Adventures, and paid cash for the following: land, $100,000; lodge, $530,000; and fishing boats,

$9,000. The lodge has a remaining useful life of 50 years and a $50,000 salvage value. The boats have remaining lives of five years and no salvage value.

3 Paid State Farm for Februarys insurance premium for the new camp, $1,000. Our term with them are Net 60. In this transaction we are recording the purchase and the accounts payable, not the expense because we have not paid it yet. When we recorded these transactions in the general journal, we recorded directly to the accounts payable account.

4 Purchased office supplies from Gordon Office Supplies on account, $300. Our terms with them are Net 30.

5 Nights office manager returned $100 worth of office supplies to Gordon Office Supply. Night received a $100 reduction on the account.

6 In order to provide snacks for guests on a 24-hour basis, Night signed a contract with the vending supply company, Snack Attack. Snack Attack will install vending machines with food and drinks and pay a 10% commission on all sales. The commission will be due at the end of every month. No transaction needed at this time.

6 Night purchased a surround sound system and big screen TV with a digital satellite system for the guest lounge. The purchase was made at Best Buy. The surround sound system cost $3,600 and has an estimated useful life of five years and no salvage value. The TV cost $8,000, has an estimated useful life of eight years, and has a salvage value of $800. Night paid cash for both items.

These are Fixed Assets. Detail Type: Fixed Assets Other Tools and Equipment.

7 Paid Direct TV for Februarys programming on the new digital satellite system, $235. (The expense account is 546 Satellite Programming Expense.)

7 Received registration information from Augsburg University $30,000

8 Received registration information from St. Cloud State University. $40,000

9 Purchased food supplies from Acme Super Market on account, $540.

9 Paid Gordon Office Supplies on account, $200.

9 Received registration information from University of Minnesota. $40,000

10 Received registration information from University of St. Thomas. $30,000

10 Received a check for $30,000 from Augsburg University for registration payment

10 Received a check for $40,000 from University of Minnesota for registration payment

14 Paid $1,500 for Mays advertising spots on National Sports Talk Radio.

512 Advertising Expense

15 Paid wages to fishing guides, $10,000.

16 Paid repair fee for damaged boat, $650.

15 Paid $1,200 for Mays advertising spots on billboards.

16 Paid utilities bill, $2,300.

16 Paid phone bill, $800.

16 Paid Acme Super Market on account, $2,000.

17 Bob Night withdrew cash for personal use, $7,500.

17 Received registration information and full payment from Luther College in Decorah, IA. $40,000

28 Vending machine sales for the month were 2,300.00. Snack Attack sent a check for $230 for the months 10% commission owed. Record this as Vending Revenue.

28 Paid wages to fishing guides, $10,000.

Generate a General Journal report. Generate the report for February 1 February 28.

Generate a pre-adjusted Trial Balance report.

Prepare adjusting entries for February. Using the Trial Balance report and the adjustment information provided in the text, enter the adjusting entries in the General Journal. For each entry, key "Adjusting Entry" in the Memo column.

Adjustment information at the end of February is provided below.

1. a. Make one adjusting entry for all depreciation on the boats. Straight-line depreciation is used for the 10 boats purchased in January for $60,000. The useful life for these assets is five years and there is no salvage value. A full months depreciation was taken in January on these boats. Record the depreciation for February.

Purchase price Salvage value/useful life = amount you can depreciate each month. 60,000/5/12=$1000 you recorded $1,000 depreciation in January and will record the same amount for January. Now add the depreciation for the new boats.

b. Straight-line depreciation is also used for the two boats purchased in February. Purchase price: fishing boats, $9,000. The boats have remaining lives of five years and no salvage value.

2. Straight-line depreciation is used to depreciate the surround sound system. The surround sound system cost $3,600 and has an estimated useful life of five years and no salvage value.

3. Straight-line depreciation is used to depreciate the big screen TV. The TV cost $8,000, has an estimated useful life of eight years, and has a salvage value of $800.

4. Straight-line depreciation is used for the building purchased in February.

Lodge, $530,000; the lodge has a remaining useful life of 50 years and a $50,000 salvage value.

5. On February 2, Night paid $9,000 for insurance during the six-month camping season. Februarys portion of this premium was used up during this month.

6. Office supplies remaining on hand, $150.

7. Food supplies remaining on hand, $5,925.

Generate an adjusted Trial Balance report.

Generate an Income Statement.

Generate a Statement of Owner's Equity.

75100 131 20,000 40,000 30,700 Closing Entries Registration Fees Wages Expense Rent Expense Food Supplies Expense Office Supplies Expense Utilities Expense Telephone Expense Insurance Expense Depreciation Expense Bob Night, Capital To close revenue and expense accounts Bob Night, Capital Bob Night, Withdrawals To close drawings account 400 2,000 1,200 1,500 1,000 ??? 131 6,000 6,000