Kauai Adventures rents and sells surfboards, snorkeling, and scuba equipment. During March, Kauai engaged in the following transactions: March Transactions: Mar. 2 Received $51,500 cash from customers for rental. 3 Purchased on credit ten new surfboards (which Kauai classifies as inventory) for $180 each 6 Paid wages to employees in the amount of $9,200. 9 Paid office rent for the month in the amount of $1,000. 12 Purchased a new Ford truck for $40,800: paid $1,000 down in cash and secured a loan from Princeville Bank for the $39,800 balance. Collected a $1,050 account receivable. Paid an account payable in the amount of $950. 13 16 23 Borrowed $10,000 on a 6-month, 8% note payable. 27 Paid the monthly telephone bill of $185. 30 Paid a monthly advertising bill of $1,550. Required: Prepare a journal entry for each of these transactions. CHART OF ACCOUNTS Kauai Adventures General Ledger ASSETS 111 Cash 121 Accounts Receivable 122 Notes Receivable 123 Supplies 124 Prepaid Insurance 125 Prepaid Rent 126 Inventory 131 Land 132 Buildings REVENUE 411 Sales Revenue 412 Service Revenue 413 Interest Income EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 514 Utilities Expense 133 Equipment 515 Rent Expense 135 Trucks 139 Accumulated Depreciation LIABILITIES 211 Accounts Payable 212 Notes Payable 213 Income Taxes Payable 214 Wages Payable 215 Utilities Payable 216 Insurance Payable 217 Interest Payable 218 Rent Payable 219 Unearned Service Revenue 231 Bonds Payable 517 Repairs and Maintenance Expense 521 Wages Expense 531 Interest Expense 532 Depreciation Expense 533 Income Taxes Expense EQUITY Payable 218 Rent Payable 219 Unearned Service Revenue 231 Bonds Payable EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends General Journal Prepare a journal entry of the transactions on March General Journal Instructions GENERAL JOURNAL BATE ACCOUNT TITLE Check My Work 5 more Check My Work use remaining PAGE IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT POST CREDIT CALITIES EQUITY REVENUE HET INCOME Previous Next