Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 3, Problem 3.16MCE
Journal Entries for Vail Resorts
Refer to the income statement for Vail Resorts shown in the chapter opener. Using the account titles reported there, prepare the
- Fuel for the motors in the ski lifts is purchased for $1,000.
- A skier purchases a lift ticket for $80.
- Salaries and wages for hotel staff of $4,000 are paid.
- A guest pays $150 for one night’s lodging.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Before you begin this assignment, review the Tying It All Together feature in the chapter.
Part of Fry’s Electronics, Inc.'s experience involves providing technical support to its customers. This includes in-home installations of electronics and also computer support at their retail store locations.
Requirements
Suppose Fry’s Electronics, Inc. provides $10,500 of computer support at the Dallas-Fort Worth store during the month of November. How would Fry's Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect?
Assume Fry’s Electronics, Inc.’s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry’s Electronics record this transaction? What financial statement(s) would this transaction affect?
What is the difference in how revenue is recorded in requirements 1 and 2? Clearly state when revenue is recorded in each requirement.
You are have just been hired to mange the Hotel Gift/Sundries Shop. The Hotel
Manager provides you with the following information:
Hotel Gift/Sundries Shop
Summary Balance Sheet
Assets
Current Assets
Hotel Gift/Sundries Shop
Summary Income Statement
Revenue
2018
2019
2020
2018
2019
2020
$3,000,000 $2,738,000 51.800 250
$2,325,000 $2,050,000 $1,400,000
$688.000
$706,000
($18,000)
Cost of Goods Sold
$117,491
$4,125
$25,000
$146,616
$37,793
$92,273
$2,534
$5,000
$99,807
$40,808
$42,356
$1,252
$30,000
$73,608
$96,286
Gross Profit
Selling, General & Admin
$675.000
$702,500
(527,500)
$400,250
$390,000
Cash
Accounts Receivable
Inventory
Net Income
$10,250
Current Assets
Fixed Assets
Total Assets
Liabilities
$184,408
$140,615
$169,894
$180,231
$29,873
$210,104
(569,489)
$140,615
$201,498
$27,635
$229,133
(559,239)
$169,894
Current Liabilities
Long Term Liabilities
Total Liabilities
Total Equity
Total Liabilities and STE
$199,247
$36,650
$235,897
(551,489)
$184,408
Based on the information:
1.…
Cornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a
membership basis. Members pay $200 dues per month, which entitle them to a complete wash and detail service monthly. Members
may also order additional car washes during the month at a fee of $75. Additional washes are common in both summer and winter
months. The number of members also varies with the season. The number of members and the average number of additional washes
by members for the months of interest follow:
January
February
March
April
May
June
Members
360
420
980
1,120
1,150
1,300
March
Apri
May
June
Additional
Washes (Average
per Member).
Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50
percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is
uncollectible. Additional washes are payable in cash.…
Chapter 3 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 3 - Read each definition below and write the number of...Ch. 3 - Types of Events For each of the following events,...Ch. 3 - Prob. 3.2ECh. 3 - The Effect of Transactions on the Accounting...Ch. 3 - Types of Transactions There are three elements to...Ch. 3 - Balance Sheet Accounts and Their Use Choose from...Ch. 3 - Normal Account Balances Each account has a normal...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Trial Balance The following list of accounts was...
Ch. 3 - Journal Entries Recorded Directly in T Accounts...Ch. 3 - Prob. 3.11MCECh. 3 - Determining an Ending Account Balance Jessies...Ch. 3 - Reconstructing a Beginning Account Balance During...Ch. 3 - Journal Entries Prepare the journal entry to...Ch. 3 - Journal Entries Following is a list of...Ch. 3 - Journal Entries for Vail Resorts Refer to the...Ch. 3 - Prob. 3.17MCECh. 3 - Prob. 3.1PCh. 3 - Transaction Analysis and Financial Statements Just...Ch. 3 - Transaction Analysis and Financial Statements...Ch. 3 - Transactions Reconstructed from Financial...Ch. 3 - Prob. 3.5MCPCh. 3 - Prob. 3.6MCPCh. 3 - Transaction Analysis and Journal Entries Recorded...Ch. 3 - Prob. 3.8MCPCh. 3 - Journal Entries Atkins Advertising Agency began...Ch. 3 - Prob. 3.10MCPCh. 3 - The Detection of Errors in a Trial Balance and...Ch. 3 - Journal Entries, Trial Balance, and Financial...Ch. 3 - Journal Entries, Trial Balance, and Financial...Ch. 3 - Prob. 3.1APCh. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Transactions Reconstructed from Financial...Ch. 3 - Prob. 3.5AMCPCh. 3 - Accounts Used to Record Transactions A list of...Ch. 3 - Prob. 3.7AMCPCh. 3 - Trial Balance and Financial Statements Refer to...Ch. 3 - Journal Entries Castle Consulting Agency began...Ch. 3 - Prob. 3.10AMCPCh. 3 - Entries Prepared from a Trial Balance and Proof of...Ch. 3 - Journal Entries Overnight Delivery Inc. is...Ch. 3 - Journal Entries and a Balance Sheet Krittersbegone...Ch. 3 - Prob. 3.1DCCh. 3 - Prob. 3.2DCCh. 3 - Prob. 3.3DCCh. 3 - Prob. 3.4DCCh. 3 - Prob. 3.5DCCh. 3 - Prob. 3.6DCCh. 3 - Prob. 3.7DC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Cornwall Mobile Detailing (CMD) is a service that washes and details a customer's vehicle at their home or office. It operates on a membership basis. Members pay $200 dues per month, which entitle them to a complete wash and detail service monthly. Members may also order additional car washes during the month at a fee of $75. Additional washes are common in both summer and winter months. The number of members also varies with the season. The number of members and the average number of additional washes by members for the months of interest follow: Members Additional Washes (Average per Member) January 360 0.8 February 420 1.1 March 980 0.7 April 1,120 0.6 May 1,150 0.9 June 1,300 1.4 Cornwall allows members to pay for dues on credit. Cornwall's experience is that 40 percent of its members pay cash for the dues, 50 percent of the members pay the dues for a month in the next month, 5 percent in the second month after. The remainder is uncollectible. Additional…arrow_forwardJohn Grey owns Grey's Snow Plowing. In October, Grey's collects $12,000 cash for 6 commercial accounts for which he will provide snowplowing for the entire season. To record this transaction, Grey will enter which of the following entries? (Check all that apply.) Debit to Unearned Plowing Revenue Debit to Plowing Revenue Credit to Cash Credit to Unearned Plowing Revenue Debit to Cash Check all that apply. Credit to Plowing Revenuearrow_forwardAssume that you are responsible for planning a banquet for your school’s accounting club. The banquet will feature a dinner, followed by a speaker. The costs associated with the banquet are as follows: Meals Beverages (coffee and tea) Use of banquet room Speaker’s fee $10 per person $1 per person $50 $100 Assume that 50 students will attend the banquet. If you want to break even on this event, how much do you need to charge for a ticket? Please explain your answer and how it relates to Chapter 19.arrow_forward
- My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURRENT LIABILITIES AND PAYROLL now. There is a question asks me to do two tasks. 1. Prepare the necessary journal entry to record the payroll of Hotel Properties, Inc., on February 15, 20x1. 2. Prepare the journal entry that would be made on the date the payroll was actually paid. The scenario is the following: You have been asked to prepare the entry to record the payroll on February 15, 20x1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employee. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees' contribution to a health insutance plan.arrow_forwardPrepare general journal entries for the following transactions of Green Energy Company. Use the following (partial) chart of accounts: Cash; Accounts Receivable; Supplies; Accounts Payable; Consulting Revenue; and Utilities Expense. May 1 The company billed a customer $2,000 in consulting revenue for sustainable proposals. 3 The company purchased $300 of energy-efficient supplies on credit. 9 The company collected $500 cash as partial payment of the May 1 consulting revenue. 20 The company paid $300 cash toward the payable for energy-efficient supplies. 31 The company paid $100 cash for May’s renewable energy utilities.arrow_forwardConsider each of the transaction below independently. All expenditures were made in cash In march, the Cleanway Laundromat bought equipment. Cleanway paid $5,000 down and signed a noninterest-bearing note requiring the payment of $30,000 in nine months. The cash price for the equipment was $34,000. Prepare all necessary journal entries to record each the transaction. Use this format: Date Account Titles DR CRarrow_forward
- You are working as an accountant in Hotel Four Seasons. You are asked to make a meaningful comparison of your financial statements against the figures of your main competitor in town. Required: Choose the best method of analysis to compare the following figures (assets) of Four Seasons and Hotel Two Moons. Also explain your choice method (2-3 sentences). Use a prepared grid for your results! Show all figures with 2 decimal places! Hotel Four Seasons. December 31. 2020 Assets Cash 14,000 Marketable Securities 15,000 Accounts Receivable (net) 65,000 Inventories 9,000 Building 2,617,000 Furnishings and Equipment 943,000 Less: Accumulated Depreciation 565,000 Total 3,098,000 Hotel Two Moons, December 31, 2020 Assets Cash 134,000 Marketable Securities 898,000 Account Receivable (net) 1,981,000 Inventories 186,000 Building 5,207,000 Furnishing and Equipment 2,650,000 Less:…arrow_forwardBarry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following Saturday. College players serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration fee includes a room, meals at a nearby restaurant, and basketball instruction. In the off-season, the facilities are used for weekend retreats and coaching clinics. The following transactions took place during the month of June: June 1 Bird invested cash in the business, $10,000. 1 Purchased basketballs and other athletic equipment, $3,000. 2 Paid Hite Advertising for flyers that had been mailed to prospective campers, $5,000. 2 Collected registration fees, $15,000. 2 Rogers Construction completed work on a new basketball court that cost $12,000. Arrangements were made to pay the bill in July. 5 Purchased office supplies on account…arrow_forwardAssume that you recently accepted a position with Five Star National Bank & Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating a loan request for $300,000 from West Gate Auto Co., a small proprietor- ship. In support of the loan application, Joan Whalen, owner, submitted a "Statement of Accounts" (trial balance) for the first year of operations ended October 31, 2019. West Gate Auto Co. Statement of Accounts October 31, 2019 Cash 5,000 Billings Due from Others. Supplies (chemicals, etc.) Building... 40,000 7,500 222,300 Equipment.. 50,000 Amounts Owed to Others.. 31,000 Investment in Business 179,000 Service Revenue 215,000 Wages Expense 75,000 Utilities Expense 10,000 8,000 Rent Expense . Insurance Expense Other Expenses 6,000 1,200 425,000 425,000 Explain to Joan Whalen why a set of financial statements (income statement, 1. statement of owner's equity, and balance sheet) would be useful to you in evaluating the…arrow_forward
- My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURRENT LIABILITIES AND PAYROLL now. There is a question asks me to do two following works: 1. Prepare the necessary journal entry to record the payroll of Hotel Properties, Inc., on February 15, 20X1. 2. Prepare the journal entry that would be made on the date the payroll was actually paid. The scenario is "You have been asked to prepare the entry to record the payroll on February 15, 20X1, for Hotel Properties, Inc. The gross wages are $8,000 for administrative salaries and $6,000 for sales salaries. The federal income tax rate is 28 percent, the state income tax rate is 4.6 percent, and the FICA rate is 7.65 percent for all employees. All wages are subject to these taxes. In addition to taxes withheld, the employer has withheld $128 for the employees contribution to health insurance plan."arrow_forwardBlue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.arrow_forwardHawaiian Corporate Holidays arranges events for large corporations and trusts. It books hotel rooms, airline tickets, transportation and any other venues a company requests. It normally bills the companies ahead of the event, recording the invoice as unearned revenue. Once the event is complete, an entry is made to reclassify the amount from unearned revenues to Airline Sales or Event Sales. Record the following transactions in the general journal using the account names shown in the Chart of Accounts (page 3). Skip a line between each entry. You do not need to include explanations. Do not input general ledger account numbers in the Post Ref column of the journal until you post the journal entry to the ledger. Mar 1 You have recently formed a corporation called Hawaiian Corporate Holidays (HCH). You invest $40,000 in a checking account in the company’s name at Bank of Hawaii. Since the company is a corporation, it issues you 8,000 shares of $5 par value common stock in…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License