RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in

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RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2021, RiverHawk has the following account balances.

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The following transactions occur during December 2021:

December 1 Pay rent for mountain lodges for the month of December, $900.December 5 Provide guided tour to customers in Grand Teton National Park for cash, $2,800.December 8 Borrow from a local bank by signing a note payable, $10,000. The note is due in one year with a 6% interest rate.December 12 Receive cash from customers as payment for a guided tour that occurred on November 28, $3,500.December 13 Issue additional shares of common stock for cash, $20,000.December 15 Pay employee salaries for the first half of the month, $1,200.December 17 Purchase advertising on several local radio stations to be aired during the following two weeks, $1,000.December 22 Provide guided tour to customers in Yellowstone National Park on account, $3,200.December 23 One of the customers from the December 22 tour claims to have seen the legendary creature Bigfoot. The company believes this exciting news will createadditional revenue of $20,000 next year.December 26 Purchase several pieces of hiking equipment to give customers a more enjoyable adventure, such as night-vision goggles, GPS, long-range binoculars, and video cameras, for cash, $28,500.December 28 Pay cash on accounts payable, $1,500.December 31 Pay dividends to stockholders, $2,000.

Required:1. Record each transaction.2. Post each transaction to the appropriate T-accounts.

3. Calculate the balance of each account at December 31, 2021. (Hint: Be sure to include the balance at the beginning of December in each T-account.)4. Prepare a trial balance as of December 31, 2021.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

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