Return to question Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Most guests of the campground pay at the time they check out, and the amounts collected are credited to Camper revenue. The following information is available as a source for preparing the adjusting entries at December 31. 1. Enchanted Forest Invests some of its excess cash in certificates of deposit (CDs) with its local bank. Accrued Interest revenue on Its CDs at December 31 is $400. None of the interest has yet been received. (Debit Interest receivable.) 2. A six-month bank loan in the amount of $12,000 had been obtained on September 1. Interest is to be computed at an annual rate of 8.5 percent and is payable when the loan becomes due. 3. Depreciation on buildings owned by the campground is based on a 25-year life. The original cost of the bulldings was $600,000 The Accumulated Depreciation: Buildings account has a credit balance of $310,000 at December 31, prior to the adjusting entry process. The straight-line method of depreciation is used 4. Management signed an agreement to let Boy Scout Troop 538 of Lewisburg, Pennsylvania, use the campground in June of next year. The agreement specifies that the Boy Scouts will pay a daily rate of $15 per campsite, with a clause providing a minimum total charge of $1,475. 5. Salaries earned by campground employees that have not yet been paid amount to $1,250. 6. As of December 31, Enchanted Forest has earned $2,400 of revenue from current campers who will not be billed until they check out. (Debit Camper revenue recevable.) 7. Several lakefront campsites are currently being leased on a long-term basis by a group of senior citizens. Six months' rent of $5,400 was collected in advance and credited to Unearned Camper revenue on October 1 of the current year. 8. A bus to carry campers to and from town and the airport had been rented the first week of December at a daily rate of $40. At December 31, no rental payment has been made, although the campground has had use of the bus for 25 days 9. Unrecorded Income taxes expense accrued in December amounts to $8,400. This amount will not be paid until January 15. For each of the above numbered paragraphs, prepare the necessary adjusting entry. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Credit Dec. 31 Interest receivable Interest revenue Debit 400 400 Dec. 31 340 X Interest expense Interest payable 340 Dec. 31 24,000 Depreciation expense - buildings Accumulated depreciation - buildings 24,000 Dec. 31 No journal entry required rad Dec. 31 1,250 Salaries expense Salarios payable 1.250 Dec. 31 2,400 Camper revenue receivable Camper revenue 2,400 x Answer is not complete Complete this question by entering your answers in the tabs below. Required A Required C Required D Required E Compute the book value of the campground's buildings to be reported in the c (Refer to paragraph 3.) Net book value at December 266,000 $ 31
