Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gopher's Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended, November 30, 2018.
Gopher's Boat Yard, Inc., repairs, stores, and cleans boats for customers. It is completing the accounting process for the year just ended, November 30, 2018. The transactions for the past year have been journalized and posted. The following data with respect to adjusting entries at year-end are available: a. Gopher winterized (cleaned and covered) three boats for customers at the end of November, but did not record the service for $3,300 (the total for all three boats.) b. On October 1, 2018, Gopher's paid $2,200 to the local newspaper for an advertisement to run every Friday for 12 weeks. All ads have been run except for three Friday's in December to complete the 12-week contract. c. The Bucky Family paid Gopher's $4,500 on November 1, 2018 to store its sailboard for the winter until May, 1, 2019. Gopher's credit the full amount to Unearned Storage Revenue on November 1. d. Gopher's used boat-lifting equipment that cost $180,000; $18,000 was the estimated depreciation for 2018. Required: 1. Identify each of these transactions above as a deferred revenue, deferred expense, accrued revenue, or accrued expense. 2. Prepare the adjusting entries that should be recorded for Gopher's at November 30, 2018
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started