Question
RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2018, RiverHawk has the following account balances: RIVERHAWK
RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2018, RiverHawk has the following account balances:
RIVERHAWK EXPEDITIONS Trial Balance November 30, 2018 | ||||
Accounts | Debits | Credits | ||
Cash | $ | 10,600 | ||
Accounts Receivable | 5,200 | |||
Prepaid Insurance | 1,100 | |||
Equipment | 24,800 | |||
Land | 180,500 | |||
Accounts Payable | $ | 4,000 | ||
Notes Payable | 50,700 | |||
Common Stock | 134,000 | |||
Retained Earnings | 14,800 | |||
Dividends | 5,700 | |||
Service Revenue | 75,700 | |||
Advertising Expense | 11,700 | |||
Salaries Expense | 29,000 | |||
Rent Expense | 10,600 | |||
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Totals | $ | 279,200 | $ | 279,200 |
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The following transactions occur during December 2018: December 1 Pay rent for mountain lodges the month of December, $1,600. December 5 Provide guided tour to customers in Grand Teton National Park for cash, $3,500. December 8 Borrow from a local bank by signing a note payable, $17,000. The note is due in one year with a 6% interest rate. December 12 Receive cash from customers as payment for a guided tour that occurred on November 28, $4,200. December 13 Issue additional shares of common stock for cash, $27,000. December 15 Pay employee salaries for the first half of the month, $1,900. December 17 Purchase advertising on several local radio stations to be aired during the following two weeks, $1,700. December 22 Provide guided tour to customers in Yellowstone National Park on account, $3,900. December 23 One of the customers from the December 22 tour claims to have seen the legendary creature Bigfoot. The company believes this exciting news will create additional revenue of $27,000 next year. December 26 Purchase several pieces of hiking equipment to give customers a more enjoyable adventure, such as night-vision goggles, GPS, long-range binoculars, and video cameras, for cash, $29,200. December 28 Pay cash on accounts payable, $2,200. December 31 Pay dividends to stockholders, $2,700.
- Post each transaction to the appropriate T-accounts and Calculate the balance of each account at December 31. (Hint: Be sure to include the balance at the beginning of December in each T-account.) - Prepare a trial balance as of December 31.
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