Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Riva's River Rafting Riva's River Rafting Expeditions Inc. is a calendar year corporation. NONE of the year-end adjusting entries have been recorded. The following is

image text in transcribed
image text in transcribed
Riva's River Rafting Riva's River Rafting Expeditions Inc. is a calendar year corporation. NONE of the year-end adjusting entries have been recorded. The following is an excerpt from the December 31, 2021 UNADJUSTED trial balance. DR CR 200,000 6,860 31,500 Rafting fees receivable Notes receivable - Lamco Medical Supplies Prepaid Insurance Prepaid Advertising Interest receivable Salaries payable Interest payable Accrued expenses payable Unearned rafting fees Unearned subscription revenue Note payable - Scrooge National Bank Raft Wreckers subscription revenue Rafting Fees Earned Interest income Advertising expense Insurance expense Interest expense Utilities expense Salary expense Medical Supplies expense 36,000 180,000 18,000 945,000 36,750 41,800 78,100 462,000 37,600 The following information relates to the year-end adjustments: The following information relates to the year-end adjustments: {a} Riva keeps an ample inventory medical supplies as rafters are frequently thrown from their river rafts onto jagged rocks. A physical count of medical supplies revealed that the company had $2,960 of supplies were on hand as of December 31, 2021. {b) Riva paid $42,000 on September 1, 2021 for insurance coverage covering the year beginning on September 1st. All other insurance costs had expired as of December 31, 2021. {c) . {d} On August 1, 2021 Riva accepted $54,000 for annual subscriptions to her wildly popular "Capsized and Wrecked Raft" videos. Each month, beginning in August 2021, Riva sent the latest DVDs capturing the most recent raft wrecks to subscribers. A review of billings revealed that $3,300 of raft adventures had been provided in December 2021 but were NOT yet billed as of December 31, 2021. On December 1, 2021 Riva paid $9,000 to WFAN for radio advertisements to be aired from December 1, 2021 through May 31, 2022. All other advertising costs had been consumed as of December 31, 2021. {e} {f} On December 11, 2021 Riva borrowed $180,000 @ 6% for 120-days from Scrooge National Bank On Friday January 7, 2022 Riva paid $18,000 to employees for the TWO five-day work weeks then ended. {e) {e} On December 1, 2021 Riva collected $19,200 for "Whitewater Wild Weekends in the Drink". Companies that were required to pay for all reserved weekends in advance. Riva estimates that $3,800 of these advance payments remain unearned at December 31, 2021. {h) On December 16, 2021 Riva loaned $200,000 @ 12% for 120-days to Lamco. {0) Riva received a $7,800 PSE&G bill (Electricity) in January 2022. An examination of the invoice revealed that 40% of the charges pertained to December 2021

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

Financial Accounting For Executives And MBAs

Authors: Paul Simko, James Wallace, Joseph Comprix

5th Edition

1618533665, 9781618533661

More Books

Students also viewed these Accounting questions

Question

1. Can they separate relevant from irrelevant information?

Answered: 1 week ago

Question

OUTCOME 2 Identify and explain the privacy rights of employees.

Answered: 1 week ago