COMPREHENSIVE PROBLEM 1: THE ACCOUNTING CYCLE.

Bob Night opened The General Favorite Fishing Hole. The fishing camp is open from April through September and attracts many famous college basketball coaches during the off season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques. The chart of accounts for the camping operations is provided below.





The General's Favorite Fishing Holes



Charts of Accounts





Assets





101 Cash



142 Office supplies



144 food supplies



145 preparid insurance



181 fishing boats



181.2 accum. depr. fishing boats





Liabilities



202 accounts payable



219 wages payable









owner's equity

311 bob night, capital



312 bob night, drawing



313 income summary





revenues



401 registration fees







expenses



511 wages expense



521 rent expense



523 office supplies expense



524 food supplies expense



525 telephone expense



533 utilities expense



535 insurance expense



536 postage expense



542 depr. exp. fishing boats















The following transactions took place during April 20----







Apr 1 night invested cash in business, 90,000







Apr 1 paid insurance premium for camping season, 9,000





Apr 2 paid rent for lodge and campgrounds forthemonth of apr 40,000





Apr 2 deposited registration fees, 35,000





Apr 2 purchased ten fishing boats on account for 60,000. The boats have estimated useful lives of five years, at which time they will be donated to a local day camp. arrangement were made to pay for the boats in July.





Apr 3 purhcased food supplies from acme super market on acount, 7,000





Apr 5 purchase office supplies from gordon office supplies on account, 500





Apr 7 deposited registration fees, 38,600





Apr 10 purchase food supplies from acme super market on account, 8,200





Apr 10 paid wages to fishing guides, 10,000





Apr 14 deposited registration fees, 30,050





Apr 16 purchased food supplies from acme super market on account, 9,000





Apr 17 paid wages to fishing guides, 10,000





Apr 18 paid postage 150





Apr 21 deposited registration fees, 35,600





Apr 24 purchased food supplies from acme super market on acct, 8,500





Apr 24 paid wages to fishing gudies, 10,000





Apr 28 deposited registration fees, 32,000



Apr 9 paid wages to fishing guides, 10,000



Apr 30 purchased food supplies from a acme super market on account, 6,000



Apr 30 paid acme super market on account, 32,700



Apr 30 paid utilities bill, 2,000



Apr 30 paid telephone bill, 1,200



Apr 30 Bob night withdrew cash for personal use, 6,000



Adjustment information for the end of April is provided below



a. office supplies remaining on hand, 100



b. food supplies remaining on hand, 8,000



c. insurance expired during the month of April, 1,500



d. depreciation on the fishing boats for the month of April, 1,000

e. wages earned, but not ye paid, at the end of april, 500.

Required:





1. enter above transactions in a general journal. enter transactions from April 1-5 on page 1, April 7-18 on page 2, April 21-29 and the first two entries for April 30 on page 3, and the remaining entires for April 30 on page 4.





2. post the entries to the general ledger. (if you are not using the working papers that accompany this text, you will need to enter the account titles and account number in the general ledger accounts.



3. prepare a trial balance on a work sheet



4. complete the work sheet.



5. prepare the income statement.



6. prepare the statement of owner's equity.



7. prepare the balance sheet.



8. journalize the adjusting entries (page5)



9. post the adjusting entries to the general ledger.



10. journalize the closing entries (pages 5 and 6).



11. post the closing entries to the general ledger.



12. prepare a cost closing trail balance.