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Taylor Marina has 3 0 0 available slips that rent for $ 8 0 0 per season. Payments must be made in full by the
Taylor Marina has available slips that rent for $ per season. Payments must be made in full by the start of the boating season, April The boating season ends October and the marina has a December yearend. Slips for future seasons may be reserved if paid for by December Under a new policy, if payment for season slips is made by December a discount is allowed. If payment for season slips is made by December renters get a discount this promotion hopefully will provide cash flow for major dock repairs
On December all slips for the season were rented at full price. On December slips were reserved and paid for the boating season, and slips were reserved and paid for the boating season.
Instructions:
Prepare the appropriate journal entries for December and December
Assume the marina operator is unsophisticated in business. Explain the managerial significance of the above accounting to this person.
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