HADM 1210 Lecture Outline Chapter 3 1. Key outcome for the chapter is to master the...

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HADM 1210 Lecture Outline Chapter 3 1. Key outcome for the chapter is to master the concepts related to accrual basis accounting. These include the revenue recognition and matching principle, and the journal entries required to ensure that the income statement only includes earned revenues and incurred expenses. 2. Second outcome is to increase the number of transactions you are able to journalize (i.e., business events related to all six elements (A, L, OE, R, E, D). Cayuga Lodge began operations on January 1, 2021. Prepare journal entries for the following transactions: Issued 50,000 shares of $2 par value common stock for $1,000,000. 1/1 1/2 Purchased a 5-bedroom furnished lake property on E. Shore Dr. for $825,000 (assign $125,000 to the land; $30,000 to furniture/fixtures and $25,000 for kitchen equipment and the remainder to the building). The company paid $170,000 in cash and signed a note payable (20 yr.) for the balance. Purchased food and beverage inventory on account for 25,000. Catered an event for $50,000 (cost of F & B was $20,000). Received $25,000 with the rest on account. Paid salary expense of $18,000. Repurchased 1,000 shares of the common stock for $6 per share. 1/3 1/15 1/18 1/19 1/20 Received $15,000 from customers on account. 1/25 Sold of the kitchen equipment for $10,000. 1/26 1/28 Sold gift cards for a spring weekend getaway in the Finger Lakes to customers for $3,000 cash. Paid in advance $12,000 for advertising. Date 1/1 M. MacAusland, 2022 Account Debit Credit Cash A/R Inventory Prepaid Expense Land Kitchen Equipment Furniture/Fixtures Building A/P N/P Unearned Revenue Common Stock APIC Sales Revenue COGS Salary Expense Loss on Kitchen Equipment Treasury Stock Totals M. MacAusland, 2022 Trial Balance Account name Debit Credit HADM 1210 Lecture Outline Chapter 3 1. Key outcome for the chapter is to master the concepts related to accrual basis accounting. These include the revenue recognition and matching principle, and the journal entries required to ensure that the income statement only includes earned revenues and incurred expenses. 2. Second outcome is to increase the number of transactions you are able to journalize (i.e., business events related to all six elements (A, L, OE, R, E, D). Cayuga Lodge began operations on January 1, 2021. Prepare journal entries for the following transactions: Issued 50,000 shares of $2 par value common stock for $1,000,000. 1/1 1/2 Purchased a 5-bedroom furnished lake property on E. Shore Dr. for $825,000 (assign $125,000 to the land; $30,000 to furniture/fixtures and $25,000 for kitchen equipment and the remainder to the building). The company paid $170,000 in cash and signed a note payable (20 yr.) for the balance. Purchased food and beverage inventory on account for 25,000. Catered an event for $50,000 (cost of F & B was $20,000). Received $25,000 with the rest on account. Paid salary expense of $18,000. Repurchased 1,000 shares of the common stock for $6 per share. 1/3 1/15 1/18 1/19 1/20 Received $15,000 from customers on account. 1/25 Sold of the kitchen equipment for $10,000. 1/26 1/28 Sold gift cards for a spring weekend getaway in the Finger Lakes to customers for $3,000 cash. Paid in advance $12,000 for advertising. Date 1/1 M. MacAusland, 2022 Account Debit Credit Cash A/R Inventory Prepaid Expense Land Kitchen Equipment Furniture/Fixtures Building A/P N/P Unearned Revenue Common Stock APIC Sales Revenue COGS Salary Expense Loss on Kitchen Equipment Treasury Stock Totals M. MacAusland, 2022 Trial Balance Account name Debit Credit