Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the journaling of these accounts. 1. 3. 4. 6. Delightful Dar's Daring Dunes Transactions On May 1, Delightful Dar bought some

I need help with the journaling of these accounts.
image text in transcribed
image text in transcribed
1. 3. 4. 6. Delightful Dar's Daring Dunes Transactions 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 wom 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 new 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). 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. 5. 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!! 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 16 and May 16h 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. 8. 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. 9. 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. a Adiu

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

Latest Certified Quality Auditor Certification Actual Questions

Authors: Pass For Life

1st Edition

108127705X, 978-1081277055

More Books

Students also viewed these Accounting questions

Question

Calculate V o and I o in the circuit of Fig. 2.99. 30 70 200 V 20 5

Answered: 1 week ago

Question

please try to give correct answer 9 3 . .

Answered: 1 week ago

Question

5-8 What are the advantages and disadvantages of the BYOD movement?

Answered: 1 week ago