Winnie Leigh started a resort business, Winnie's Resort, on June 1, 2023. The following transactions took...

 

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Winnie Leigh started a resort business, Winnie's Resort, on June 1, 2023. The following transactions took place during the first quarter of business, June 1 - August 31, 2023. 1. Winnie invested $50,000 in exchange for 2,000 shares of $1 par value common stock. 2. The company acquired the property for $150,000 - $40,000 was allocated to the land and $110,000 was allocated to the cottages that would be rented out to customers. The property was paid for with a $30,000 cash down payment and a note payable was signed to cover the balance. 3. Supplies were purchased on account for $2,600. They were recorded as an asset. 4. Furniture was acquired for the lobby and the cottages for $20,000. $13,000 of it was paid in cash and the balance was on credit. 5. Guests sent in deposits to reserve cottages for the future in the amount of $4,500. 6. Cash was received from guests throughout the quarter for staying in the cottages in the amount of $84,000. 7. Salaries were paid in the amount of $45,000. 8. Operating expenses were paid in the amount of $24,000, all paid in cash. 9. Payments were made on the credit purchases of $5,000. Requirements: 1. Prepare journal entries for these transactions. 2. Post the entries to T-accounts. 3. Prepare a trial balance as of August 31, 2023. 4. From the trial balance, prepare the Income Statement, Statement of Shareholders Equity and Balance Sheet. Winnie Leigh started a resort business, Winnie's Resort, on June 1, 2023. The following transactions took place during the first quarter of business, June 1 - August 31, 2023. 1. Winnie invested $50,000 in exchange for 2,000 shares of $1 par value common stock. 2. The company acquired the property for $150,000 - $40,000 was allocated to the land and $110,000 was allocated to the cottages that would be rented out to customers. The property was paid for with a $30,000 cash down payment and a note payable was signed to cover the balance. 3. Supplies were purchased on account for $2,600. They were recorded as an asset. 4. Furniture was acquired for the lobby and the cottages for $20,000. $13,000 of it was paid in cash and the balance was on credit. 5. Guests sent in deposits to reserve cottages for the future in the amount of $4,500. 6. Cash was received from guests throughout the quarter for staying in the cottages in the amount of $84,000. 7. Salaries were paid in the amount of $45,000. 8. Operating expenses were paid in the amount of $24,000, all paid in cash. 9. Payments were made on the credit purchases of $5,000. Requirements: 1. Prepare journal entries for these transactions. 2. Post the entries to T-accounts. 3. Prepare a trial balance as of August 31, 2023. 4. From the trial balance, prepare the Income Statement, Statement of Shareholders Equity and Balance Sheet.

Answer rating: 100% (QA)

Here is the solution for the given problem 1 Journal Entries June 1 2023 Cash 50000 Common Stock 2000 Paidin Capital in Excess 48000 Issuance of 2000 ... View the full answer