Crazy Mountain Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Crazy Mountain is owned and operated by Karl Young, a well-known sports enthusiast and hunter. Karl’s wife, Mila, owns and operates Mila’s Boutique, a women’s clothing store. Karl and Mila have established a trust fund to finance their children’s college education. The trust fund is maintained by First Bank in the names of their children, Steve and Isabelle.
For each of the following transactions, identify which of the entities listed should record the transaction in its records.
C .. Crazy Mountain Sports
B .. First Bank Trust Fund
M .. Mila’s Boutique
X .. None of the above
1. Karl paid a local doctor for a physical, which was required by the workmen’s compensation insurance policy carried by Crazy Mountain Sports.
2. Karl received a cash advance from customers for a guided hunting trip.
3. Mila paid her dues to the YWCA.
4. Karl paid a breeder’s fee for an English Springer spaniel to be used as a hunting guide dog.
5. Mila deposited a $10,000 personal check in the trust fund at First Bank.
6. Karl paid for an advertisement in a hunters’ magazine.
7. Mila authorized the trust fund to purchase mutual fund shares.
8. Mila donated several dresses from the store’s inventory to a local charity auction for the benefit of a women’s abuse shelter.
9. Karl paid for dinner and a movie to celebrate the couple’s fifteenth wedding anniversary.
10. Mila purchased two dozen spring dresses from a Boise designer for a special spring sale.