The general journal entries-----------------Debit--------Credit,

April 1, 2018: To record the capital invested (2000x$10x2)

Cash-------------------------------------------$40,000

Common stock--------------------------------------------$40,000

April 1, 2018: To record the prepaid Lease rentals and security deposit

Prepaid Lease rentals---------------------$12,000

Security Deposit----------------------------$3,000

Cash--------------------------------------------------------$15,000

April 1, 2018: To record purchase of a Minivan

Minivan---------------------------------------$35,000

Cash--------------------------------------------------------$10,000

Note Payable----------------------------------------------$25,000

April 1, 2018: To record the Purchase of used deck furniture

Deck furniture------------------------------$3,000

Cash--------------------------------------------------------$3,000

April 6, 2018: To record Purchased office supplies on account from ABC

Office Supplies-----------------------------$875

Accounts Payable---------------------------------------$875

April 8, 2018: To record Prepaid Insurance

Prepaid Insurance-------------------------$1,200

Cash-------------------------------------------------------$1,200

April 8, 2018: To record receipts for room rentals for April 1 - 8, 2018

Cash-----------------------------------------$1,500

Room rentals Revenue---------------------------------$1,500

April 8, 2018: To record reservation deposits received ($250+$500+$375)

Cash---------------------------------------- $1,125

Unearned Revenue-------------------------------------$1,125

April 15, 2018: To record wage expense paid

Wages Expenses--------------------------$1,500

Cash-------------------------------------------------------$1,500

April 15, 2018: To record receipts for room rentals for April 9 - 15

Cash-----------------------------------------$1,200

Room rentals Revenue--------------------------------$1,200

April 20, 2018: To record reservation deposits received ($250+$200+$255)

Cash-----------------------------------------$705

Unearned Revenue-------------------------------------$705

April 21, 2018:To record receipts for room rentals for April 16 - 21, 2018

Cash-----------------------------------------$2,050

Room rentals Revenue---------------------------------$2,050

April 27, 2018: To record a refund to Harris Family less Administrative Fee

Unearned Revenue-----------------------$500

Administrative Fee-------------------------------------- $50

Cash-------------------------------------------------------$450

April 29, 2018: To record cash paid to ABC Office Supply

Accounts Payable------------------------$875

Cash-------------------------------------------------------$875

April 30, 2018: To record Van Payment

Interest Expense-------------------------$104.17

Note Payable-----------------------------$645.10

Cash------------------------------------------------------$749.27

April 30, 2018: To record wage expense paid

Wages Expenses------------------------$1,500

Cash------------------------------------------------------$1,500

April 30, 2018: To record credit card payments for charges incurred in April 2018

Operating expenses---------------------$1,485

Cash-----------------------------------------------------$1,485

Operating expenses are Licenses and Fees Expenses,$100Printing,$275,Uniforms & other dues,$425Advertising Expenses,$560 &Postage,$125

April 30, 2018: To record invoice sent to ACE for rooms rented

Accounts Receivable-------------------$975

Room rentals Revenue------------------------------$975

April 30, 2018: To record invoice received from Grace's Diner

Meals expenses------------------------$380

Accounts Payable------------------------------------$380

April 30, 2018: To record dividends paid to shareholders

Dividends------------------------------ $1,500

Cash----------------------------------------------------$1,500

Total-------------------------------------$111,119.27 $111,119.27

Adjusting entries On 30 April

Are entries done at the end of the period to comply with accrual principle and to match revenue and expenses in the period in which revenue is earned and expenses incurred. In this case , we will adjust the expired lease rentals on prepaid lease rentals, record depreciation and adjust for earned revenue on unearned revenue account.

To adjust and record expired lease rentals expense

Debit, Lease rentals expense--------$3,000

Credit, Prepaid Lease rentals----------------------$3,000

To record depreciation expense

Debit, Depreciation Expense-------------$625

Credit, Accumulated Depreciation-----------------------$625

Depreciation on Deck Furniture ($3000/6=$500/12=$42 for April

Depreciation on Van=$35,000/5= $7,000/12=$583

April 30, 2018: To record Room rentals earned from cash deposits received

Debit, Unearned Revenue----------------$700

Credit, Room rentals Revenue--------------------------$700

Earned Room rentals Revenue= $250+$250+$200=$700

Smith Family - $250 for April 25 - 26, 2018---is earned

Harris Family - $500 for April 29 - 30, 2018-- refunded

Mester Family - $375 for May 3 - 5,----not earned

Plourde Family - $250 for April 25 - 26, 2018---is earned

Friedman Family - $200 for April 29 - 30, 2018 ---is earned

Brooks Family - $255 for June 3 - 5, 2018----not earned

Make Trial balace sheet using this format in excel.

AutoSave OFF Accounting Cycle Case Study - Preston Hill Bed & Breakfast - ASSIGNMENT FILE (1).xls - Compatibility Mode Q ~ Search Sheet Home Insert Page Layout Formulas Data Review View Shar X cut WI AutoSum Paste Copy Arial 11 A A = 22 Wrap Text General LI Fill v AY Format B I U v div Av E E Merge & Center v $ % 2 Conditional Format Cell Insert Delete Format Sort & Formatting as Table Styles Clear Filter A4 X V fx C D E G Q P Q R S Preston Hill Bed & Breakfast Trial Balance For the Month Ended April 30, 2018 5 Account Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet ustments Post-Closing Trial Balance Number Account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit 9 101 Cash 10 105 Accounts Receivable 115 Supplies 12 120 Prepaid Rent 13 1 125 Prepaid Insurance 4 140 Delivery Van 15 150 Vehicles 6 155 Accumulated Depreciation 17 165 Security Deposits 8 203 Accounts Payable 208 Deferred Room Rental Revenue 210 Notes Payable 310 Common Stock 22 390 Retained Earnings 23 501 Room Rental Revenue 505 Administrative Fee Revenue 25 605 Advertising 26 610 Depreciation Expense 27 615 Dues Expense 28 620 Food Expense 29 640 Interest Expense 30 645 Insurance Expense 1 655 Printing Expense 650 Office Supplies 660 Postage 665 Licenses and fees 35 670 Telephone 36 675 Rent Expense 37 685 Utilities 38 690 Wage Expense 695 Uniforms 40 700 Dividends 750 Income Summary 42 Net Income (Loss) Totals