Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need some help with this one please! in balance and debits equai dreuit E3-8 Recording Journal Entries Vail Resorts, Inc., owns and operates five premier

Need some help with this one please!
image text in transcribed
in balance and debits equai dreuit E3-8 Recording Journal Entries Vail Resorts, Inc., owns and operates five premier year-round ski resort properties (Vail Mountain, LO3-4 Beav er Creek Resort, Breckenridge Mountain, and Keystone Resort, all located in the Colorado Rocky Mountains, and Heavenly Valley Mountain Resort, located in the Lake Tahoe area of California/Nevada). The company also owns a lift tickets, ski lessons, and ski equipment. The following hypothetical December transactions are typical of those that occur at the resorts. collection of luxury hotels, resorts, and lodging properties. The company sells a. Borrowed $2,300,000 from the bank on December 1, signing a note payable due in six months. b. Purchased a new snowplow for $98,000 cash on December 31. Purchased ski equipment inventory for $35,000 on account to sell in the ski shops. d. Incurred $62,000 in routine maintenance expenses for the chairlifts; paid cash. e. Sold $390,000 of January through March season passes and received cash. f Sold a pair of skis from a ski shop to a customer for $800 on account. (The cost of the skis was $500). Hint: Record two entries.) g. Sold daily lift passes in December for a total of $320,000 in cash. h. Received a $3,500 deposit on a townhouse to be rented for five days in January i. Paid half the charges incurred on account in (c). j. Received $400 on account from the customer in (). k. Paid $245,000 in wages to employees for the month of December. Required 1. Prepare journal entries for each transaction. (Remember to check that debits equal credits and that 2. Assume that Vail Resorts had a $1,000 balance in Accounts Receivable at the beginning of Decem- the accounting equation is in balance after each transaction.) ber. Determine the ending balance in the Accounts Receivable account at the end of December based on transactions (a) through (K).Show your work in T-account format. Recording Journal Entries

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 And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

10th Edition

0131457349, 978-0131457348

More Books

Students also viewed these Accounting questions