This is a 5 page case study. If anyone can help me

Required 1. Using the information presented in Exhibit 1, prepare the appropriate accounting journal entries. Note that for a specific event that recurs several times during the year, one journal entry for its total amount that year should be made. 2. From the work performed in question 1, prepare a balance sheet and income statement for CUCTC as of the end of its first year of operations. 3. What additional information does Norris need to ask Hopkins about and why before declaring the financial statements, prepared in question two above, final? Page 3 UVA-C-2364 Exhibit 1 Colorado & Utah Canyons Tour Company Panel A: Summary of current year business events from the CUCTC checkbook register Ron Hopkins established CUCTC and purchased 1,000 shares of its stock, buying all 1,000 shares for $60,000, thus becoming the founder and sole owner of the company. At the beginning of the year, Hopkins purchased, with $22,000 cash, quality cross-country skis, ropes, snowshoes, and backpacks, all of which would be used on the various tours for at least a couple of years. 3. On January 2, Hopkins paid $9,000 for 18 months of business liability insurance. Ron Hopkins had just finished his first year as founder, president, head mechanic, chief cook, and lead tour guide for the Colorado & Utah Canyon Tours Company (CUCTC). The company offered tours of the canyon lands located in western Colorado and eastern Utah. Depending on the season, a variety of tours were available including summertime rafting, hiking, horseback riding, and ATV tours as well as wintertime snowmobile, snowshoe, and cross-country ski tours. The first year had been a good one, and Hopkins thought he probably had made a small profitafter all, he had ended the year with a positive balance in the CUCTC checking account, and he had not gone hungry. Among the many roles and tasks he performed at CUCTC, however, accountant/bookkeeper was not one of them. For that task, he had called his former college roommate, Chris Norris, and offered him a free four-day summer ATV tour in exchange for preparation of a set of financial statements suitable for a $300,000 loan application he intended to make at Lofton National Bank next month. Norris, an avid outdoorsman, jumped at the offer, and he planned to spend the upcoming weekend organizing the CUCTC financial notes and records Hopkins had sent him. Company Background After college, Hopkins had worked for six summers as a seasonal U.S. Forest Service employee in southwestern Colorado. In that capacity, he had helped maintain backcountry forest roads, led a small team of other seasonal employees building new hiking trails, liaised with ranchers on some recurring cattle-grazing issues, and he had even been called on to help fight some sizeable forest fires. All in all he had loved the life and the land. He also loved the fact that when forestry season ended, he signed on with a nearby ski resort as a snowmobile tour guide and mechanic. He had not saved much money during the six years he had spent cobbling together his careers but he was not yet 30, was fit as any big-time college athlete, and hadn't spent more than a handful of days at a desk since graduating from college. Owning and operating his own outdoor recreational business had not been a thought he had harbored upon graduation, but after about three years, he knew he would someday. He liked the high aspen meadows; the craggy peaks of the Rocky Mountains; and the long, black diamond-rated ski runs of Aspen, Colorado, Park City, Utah, and the Durango Mountain, Sunlight Mountain, and Telluride ski resorts in Colorado. But he also loved the canyons. He loved the beige, brown, rust, and red colors of their cliff walls. He loved the sheer cliffs and the distinct layers of untouched earth laid bare by eons of wind and water. He loved the labyrinth of passages that held surprises around every turn. He loved the profound quiet of the dusks and dawns when he was 100 feet below plains level. And he loved the caves with their rapidly changing shadows. He loved the new experiences that nature inevitably provided for all his clients. Page 2 UVA-C-2364 The day had finally arrived when with a lot of encouragement from his girlfriend, Mia, he decided to establish CUCTC and give it his full-time effort. He rented and fixed up a well-built barn not far from the Colorado-Utah border, and he opened CUCTC for business on January 1. Hopkins had watched some local small outfitters and tour companies start up, struggle, and ultimately fail. He knew four of the keys to success in the outdoor tours business: offer a variety of appealing outings, maintain low overhead costs, provide excellent and personable service, and know your limitations. He had parlayed his relationships with a number of forest service managers to obtain the needed permissions to traverse some selected trails/routes he had enjoyed exploring through the years. He also had become good friends with some neighboring ranchers from whom he could rent horses when needed. Moreover, he had arranged for preferred customer status with Ute Recreational Equipment Inc. from whom he could rent reliable, comfortable ATVs with as little as two-weeks' notice. The Records As Norris sat down to organize the information Hopkins had sent him, he decided to summarize the events depicted throughout the year in Hopkins's checkbook registers. Hopkins had had the foresight to establish an additional checking account just for all the CUCTC activities. Therefore, Norris was pretty sure that there would be no comingling of personal and business transactions in the checkbook that Hopkins had sent him. As Norris reviewed the CUCTC checkbook, most of the entries were repeated a number of times during the course of the year, and their attendant notations provided information, such as ATV rental expense, food purchases, insurance, and customer payments. He noticed a few large-dollar entries that had occurred only once or twice during the year, and he kept those separate from the recurring ones. After completing his summary of the check register entries (Panel A in Exhibit 1), Norris read the miscellaneous notes, letters, and e-mails that Hopkins had also provided. Most of those items pertained to ideas for new treks, advertisements of the latest equipment innovations, and correspondence describing things discovered or experienced on a number of that year's tours. There were, however, some items that were potentially relevant for constructing the year's balance sheet and income statement. That information he summarized in another file (Panel B in Exhibit 1). With the two summary files, Norris thought he had all he needed for crafting a balance sheet and income statement for CUCTC's first calendar year of operations. Accounting and financial statement preparation was not a typically high-drama endeavor, but he had to admit that he was eager to see how Hopkins's new business had done. Required 1. Using the information presented in Exhibit 1, prepare the appropriate accounting journal entries. Note that for a specific event that recurs several times during the year, one journal entry for its total amount that year should be made. 2. From the work performed in question 1, prepare a balance sheet and income statement for CUCTC as of the end of its first year of operations. 3. What additional information does Norris need to ask Hopkins about and why before declaring the financial statements, prepared in question two above, final? Page 3 UVA-C-2364 Exhibit 1 Colorado & Utah Canyons Tour Company Panel A: Summary of current year business events from the CUCTC checkbook register Ron Hopkins established CUCTC and purchased 1,000 shares of its stock, buying all 1,000 shares for $60,000, thus becoming the founder and sole owner of the company. At the beginning of the year, Hopkins purchased, with $22,000 cash, quality cross-country skis, ropes, snowshoes, and backpacks, all of which would be used on the various tours for at least a couple of years. 3. On January 2, Hopkins paid $9,000 for 18 months of business liability insurance. Ron Hopkins had just finished his first year as founder, president, head mechanic, chief cook, and lead tour guide for the Colorado & Utah Canyon Tours Company (CUCTC). The company offered tours of the canyon lands located in western Colorado and eastern Utah. Depending on the season, a variety of tours were available including summertime rafting, hiking, horseback riding, and ATV tours as well as wintertime snowmobile, snowshoe, and cross-country ski tours. The first year had been a good one, and Hopkins thought he probably had made a small profitafter all, he had ended the year with a positive balance in the CUCTC checking account, and he had not gone hungry. Among the many roles and tasks he performed at CUCTC, however, accountant/bookkeeper was not one of them. For that task, he had called his former college roommate, Chris Norris, and offered him a free four-day summer ATV tour in exchange for preparation of a set of financial statements suitable for a $300,000 loan application he intended to make at Lofton National Bank next month. Norris, an avid outdoorsman, jumped at the offer, and he planned to spend the upcoming weekend organizing the CUCTC financial notes and records Hopkins had sent him. Company Background After college, Hopkins had worked for six summers as a seasonal U.S. Forest Service employee in southwestern Colorado. In that capacity, he had helped maintain backcountry forest roads, led a small team of other seasonal employees building new hiking trails, liaised with ranchers on some recurring cattle-grazing issues, and he had even been called on to help fight some sizeable forest fires. All in all he had loved the life and the land. He also loved the fact that when forestry season ended, he signed on with a nearby ski resort as a snowmobile tour guide and mechanic. He had not saved much money during the six years he had spent cobbling together his careers but he was not yet 30, was fit as any big-time college athlete, and hadn't spent more than a handful of days at a desk since graduating from college. Owning and operating his own outdoor recreational business had not been a thought he had harbored upon graduation, but after about three years, he knew he would someday. He liked the high aspen meadows; the craggy peaks of the Rocky Mountains; and the long, black diamond-rated ski runs of Aspen, Colorado, Park City, Utah, and the Durango Mountain, Sunlight Mountain, and Telluride ski resorts in Colorado. But he also loved the canyons. He loved the beige, brown, rust, and red colors of their cliff walls. He loved the sheer cliffs and the distinct layers of untouched earth laid bare by eons of wind and water. He loved the labyrinth of passages that held surprises around every turn. He loved the profound quiet of the dusks and dawns when he was 100 feet below plains level. And he loved the caves with their rapidly changing shadows. He loved the new experiences that nature inevitably provided for all his clients. Page 2 UVA-C-2364 The day had finally arrived when with a lot of encouragement from his girlfriend, Mia, he decided to establish CUCTC and give it his full-time effort. He rented and fixed up a well-built barn not far from the Colorado-Utah border, and he opened CUCTC for business on January 1. Hopkins had watched some local small outfitters and tour companies start up, struggle, and ultimately fail. He knew four of the keys to success in the outdoor tours business: offer a variety of appealing outings, maintain low overhead costs, provide excellent and personable service, and know your limitations. He had parlayed his relationships with a number of forest service managers to obtain the needed permissions to traverse some selected trails/routes he had enjoyed exploring through the years. He also had become good friends with some neighboring ranchers from whom he could rent horses when needed. Moreover, he had arranged for preferred customer status with Ute Recreational Equipment Inc. from whom he could rent reliable, comfortable ATVs with as little as two-weeks' notice. The Records As Norris sat down to organize the information Hopkins had sent him, he decided to summarize the events depicted throughout the year in Hopkins's checkbook registers. Hopkins had had the foresight to establish an additional checking account just for all the CUCTC activities. Therefore, Norris was pretty sure that there would be no comingling of personal and business transactions in the checkbook that Hopkins had sent him. As Norris reviewed the CUCTC checkbook, most of the entries were repeated a number of times during the course of the year, and their attendant notations provided information, such as ATV rental expense, food purchases, insurance, and customer payments. He noticed a few large-dollar entries that had occurred only once or twice during the year, and he kept those separate from the recurring ones. After completing his summary of the check register entries (Panel A in Exhibit 1), Norris read the miscellaneous notes, letters, and e-mails that Hopkins had also provided. Most of those items pertained to ideas for new treks, advertisements of the latest equipment innovations, and correspondence describing things discovered or experienced on a number of that year's tours. There were, however, some items that were potentially relevant for constructing the year's balance sheet and income statement. That information he summarized in another file (Panel B in Exhibit 1). With the two summary files, Norris thought he had all he needed for crafting a balance sheet and income statement for CUCTC's first calendar year of operations. Accounting and financial statement preparation was not a typically high-drama endeavor, but he had to admit that he was eager to see how Hopkins's new business had done