Prepare Journals for the year for this new business, if a recurring journal is needed, record the total for the year, prepare the income statement and balance sheet as of 12/31.

1. Ron Hopkins established Tours,Inc and purchased 1,000 shares of its stock, buying all 1,000 shares for $60,000, thus becoming the founder and sole owner of the company.
2. At the beginning of the year, Hopkins purchased with $22,000, quality cross-country skis, ropes, snowshoes and backpacks, all of which would be used on the tours for at lease of couple of years
3. On January 2, Hopkins paid $9,000 for 18 months of business liability insurance
4. Hopkins paid $2,000 to a local law firm for setting up the company
5. Hopkins acquired 8 used snowmobiles paying $20,000 cash and signing a $30,000 note dated February 1, that was payable to the Equipment Company. The notes principal was due in full on its four-year anniversary date. It carried an annual interest rate of 4% and interest was owed at the end of each month.
6. Recurring payments to subcontracted tour guides and helpers totaled $52,000 for the year
7. The Check register showed a total of $165,600 collected from customers for various tours, all tours were pre=paid in full at the time of reservation. As of 12/31 $3,600 of the $165,600 was for trips scheduled early in the new year
8. At the end of every month there had been $3,000 check disbursed as salary as the notation
9. At the beginning of every month there had been a $1,500 check issued for the rental of the barn from which Tours, Inc operated
10. There where checks made out to Equipment Inc for ATV rentals throughout the year totaling $19,800
11. Expenditures for fuel, food and miscellaneous supplies used totaled at $8,000 for the year
12. Cash expenditures for retail provisions stocked in the barns front showroom and available for sale to customers totaled $14,700
13. There had been $10,000 April check made payable to Mountain Bikes Inc. The reference line said (One-quarter Partnership Interest)
14. Hopkins paid $1,600 twice for an ad in a magazine one in June and one in December for the December Issue.
15. Retail Merchandise sales made and collected totaled $23,000
16. Purchased $1,200 worth of supplies on net 30 terms with vendor due in December
17. Took five collage buddies on tours, they will pay $1,000 each in the new year when they receive their bonuses
18. At 12/31 only $900 of retail merchandise was counted as on hand.