Continuing Problem F:2-1 continues with the company introduced in Chapter F:1, Canyon Canoe Company. Here you will account for Canyon Canoe Company’s transactions as it is actually done in practice. Begin by reviewing the transactions from Continuing Problem F:1-1. The transactions have been reprinted here.

In addition, Canyon Canoe Company completed the following transactions for December.

Requirements 

1. Journalize the transactions for both November and December, using the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Land;
Building; Canoes; Accounts Payable; Utilities Payable; Telephone Payable;
Unearned Revenue; Notes Payable; Wilson, Capital; Wilson, Withdrawals; Canoe Rental Revenue; Rent Expense; Utilities Expense; Wages Expense; and Telephone Expense. Explanations are not required. (Hint: For November transactions, refer to your answer for Continuing Problem F:1-1.)
2. Open a T-account for each of the accounts.
3. Post the journal entries to the T-accounts and calculate account balances. Formal posting references are not required.
4. Prepare an unadjusted trial balance as of December 31, 2025.
5. Prepare the income statement of Canyon Canoe Company for the two months ended December 31, 2025.
6. Prepare the statement of owner’s equity for the two months ended December 31, 2025.
7. Prepare the balance sheet as of December 31, 2025.
8. Calculate the debt ratio for Canyon Canoe Company at December 31, 2025.

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Nov. 1 Received $16,000 cash to begin the company and gave capital to Wilson. 2 3 Signed a lease for a building and paid $1,200 for the first month's rent. Purchased canoes for $4,800 on account. 4 Purchased supplies on account, $750. 7 13 Earned $1,400 cash for rental of canoes. Paid $1,500 cash for wages. 15 Wilson withdrew $50 cash from the business. 16 Received a bill for $150 for utilities. (Use separate payable account.) 20 22 26 28 30 Received a bill for $175 for cell phone expenses. (Use separate payable account.) Rented canoes to Outdoor Adventure Club on account, $3,000. Paid $1,000 on account related to the November 3 purchase. Received $750 from Outdoor Adventure Club for canoe rental on November 22. Wilson withdrew $100 cash from the business.