Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Expand Your Critical Thinking 2-6 Dyanna Craig operates Craig Riding Academy. The academy's primary sources of revenue are riding fees and lesson fees, which are

image text in transcribed
image text in transcribed
image text in transcribed
Expand Your Critical Thinking 2-6 Dyanna Craig operates Craig Riding Academy. The academy's primary sources of revenue are riding fees and lesson fees, which are paid on a cash basis. Dyanna also boards horses for owners, who are billed monthly for boarding fees. In a few cases, boarders pay in advance of expected use. For its revenue transactions, the academy maintains the following accounts: Cash, Accounts Receivable, and Service Revenue. The academy owns 10 horses, a stable, a riding corral, riding equipment, and office equipment. These assets are accounted for in these accounts: Horses, Buildings, and Equipment. The academy to maintains the following accounts: Supplies, Prepaid Insurance, Accounts Payable, Salaries and Wages Expense, Advertising Expense, Utilities Expense, and Maintenance and Repairs Expense. Dyanna pays periodic cash dividends to stockholders. To record stockholders' equity in the business and dividends, three accounts are maintained: Common Stock, Retained Earnings, and Dividends. During the first month of operations, an inexperienced bookkeeper was employed. Dyanna Craig asks you to review the following eight entries of the 50 entries made during the month. In each case, the explanation for the entry is correct. zudy Titles and Explanation May 1 Cash Common Stock (Issued common stock for $17,500 cash) 5 Cash Service Revenue (Received $275 cash for lessons provided) 7 Cash Service Revenue (Received $310 for boarding of horses beginning June 1) 14 Equipment Cash (Purchased desk and other office equipment for $750 cash) 15 Salaries and Wages Expense Cash (Issued dividend checks to stockholders) 20 Cash Service Revenue (Received $164 cash for riding fees) 30 Maintenance and Repairs Expense Accounts Payable (Received bill of $65 from carpenter for repair services performed) 31 Supplies Cash (Purchased an estimated 2 months' supply of feed and hay for $1,750 on account) Answer the following: Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Manual For Auditors

Authors: Lawrence Robert Dicksee

1st Edition

1360462546, 978-1360462547

More Books

Students also viewed these Accounting questions