Financial Accounting

1584 Words Apr 5th, 2011 7 Pages
Week 2
I)Frontier Park was started on April 1 by C.J Mendez and associates. The following selected events and transactions occurred during April.

April 1 Stockholders invested $40,000 cash in the business in exchange for common stock. 4 Purchased land costing $30,000 for cash. 8 Incurred advertising expense of $1,800 on account. 11 Paid salaries to employee $1,500. 12 Hired park manager at a salary of $4,000 per month, effective May 1. 13 Paid $1,500 cash for a one –year insurance policy. 17 Declared and paid a $1,000 cash dividend. 20 Received $5,700 in cash for admission fees. 25 Sold 100 coupon books for $25 each.Each book contains 10 coupons that
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IV)
NEOSHO RIVER RESORT, INC.
Trial Balance
August 31,2008

Account Number Debit Credit
101 Cash $19,600
126 Supplies 3330
130 Prepaid Insurance 6000
140 Land 25000
143 Cottages 125000
149 Furniture 26000
201 Accounts Payable $6,500
208 Unearned Rent 7400
275 Mortgage Payable 80000
311 Common Stock 100000
332 Dividends 5000
429 Rent Revenue 80000
622 Repair Expense 3600
726 Salaries Expense 51000
732 Utilities Expense 9400 273,900 273,900

In addition to those accounts listed on the trial balance, the chart of accounts for Neosho River Resort also contains the following accounts and account numbers: No.112 Accounts Receivable, No. 144 Accumulated Depreciation-Cottages, no. 150 accumulated Depreciation-Furniture, No.212 Salaries payable, No 230 Interest Payable, No. 320 Retained Earnings, No.620 Depreciation Expense-Cottages No. 621 Depreciation Expense-Furniture , No.631 Supplies Expense , No 718 Interest Expense, and No. 722 Insurance Expense.
Other Data:
1.Insurance expires the rate of $400 per month.
2.A count on August 31 shows $600 of supplies on hand.
3.Annual depreciation is $6,000 on cottages and $2400 on furniture
4.Uneraned rent of $4100 was earned prior to august 31.
5.Salaries of $400 were unpaid at August 31.(Use Accounts Receivable.)
7.The mortagage interest rate is 9% per year(The mortgage was taken out on august 1.)

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