UNIT 8 Apply Your Knowledge Exercises Part A 10. Following is the opening balance sheet on November 30 for the Mountainview Motel, owned by Paula Lenardon. Mountainview Motel Balance Sheet As at November 30, 20-- Assets Liabilities Cash $ 3.000 Accounts Payable/ Supplies Office Equipment 12 2 000 000 Acme Supply $ 3.000 Bank Loan 25 000 Land 100 000 Mortgage Payable 260 000 Building 400 000 Total Liabilities 288 000 Furniture Automobile 50 000 36.000 Total Assets Owner's Equity P. Lenardon, Capital Total Liabilities and $603 000 Owner's Equity 315 000 $603 000 The chart of accounts contains the accounts shown on the balance sheet plus the following: 301 P. Lenardon, Drawings 400 Room Rentals 500 Advertising Expense 502 Salaries Expense 503 Telephone Expense 505 Utilities Expense 506 Automobile Expense 501 General Expense (a) Journalize the opening entry. (b) Journalize the December transactions using account titles found in the balance sheet and in the chart of accounts. (c) Open the ledger accounts. Refer to page 118 for sample numbers for the asset, liability, and equity accounts. (d) Post the opening entry and the December general journal entries. (e) Prepare a trial balance. (f) Prepare the December financial statements. Dec. 1 Paid $250 for automobile repairs, Cheque 125. 2 P. Lenardon withdrew $850 cash for personal use, Cheque 126. 3 Paid $1000 to Acme Supply to reduce the amount owing, Cheque 127. 4 Paid $175 to Bell Canada for the telephone bill received today, Cheque 128. 5 Received $1300 cash for room rentals for the week, Sales Slips 246-269. 8 Purchased cleaning supplies on account from Acme Supply, $120, Invoice 742. 10 Paid $325 for repairs to Lenardon's personal car, Cheque 129. 11 Bought a laser printer for the office, $200, Cheque 130. 12 Received $2100 cash for room rentals for the week, Sales Slips 270-289. 12 Paid $12 for postage stamps (General Expense), Cheque 131. 12 Paid the hydro bill, $290, and the water bill, $175, received today, Cheques 132 and 133. 15 Paid $75 to Ace Printing for an advertising brochure, Cheque 134. 15 Paid $45 for a small advertisement in the Bugle newspaper, Cheque 135. 16 P. Lenardon withdrew $850 for her own use, Cheque 136. 16 Paid salaries for the first half of the month, $1500, Cheque 137. 18 The bank sent a memo informing P. Lenardon that $350 had been taken out of the business bank account to pay for inter- est on the bank loan. (Open a new account numbered 507 for Interest Expense.) 19 Received $1750 cash for room rentals for the week, Sales Slips 290-317. 22 Received a $225 bill from Acme Supply for new linen and towels, Invoice 3264. 23 Received an $85 bill from Kelly Motors for gasoline and oil used in the business car, Invoice 684. (A new account will have to be opened for Kelly Motors.) 25 Paid $350 on account to Acme Supply, Cheque 138. 26 Received $2525 cash for room rentals for the week, Sales Slips 318-340. 31 Paid salaries for the rest of the month, $1665, Cheque 139