Question

ACCT 201 Principles of Financial Accounting Practice Set 1, Part 1 Put a line between each Chesapeake Bay Kayak Rentals is located near the mouth of the Lynnhaven River on in Virginia Beach, VA, and rents kayaks to be used on the bay and the Lynnhaven River providing tours. Matt Redfern decided to start the business because of his love for the war outdoors. Matt has decided to incorporate the business to limit his legal liability. The bus operations April 1. 2019, and will have a May 31 year end River on the Chesapeake Bay aven River in addition to of the water and ly. The business began company in exchange for 16,000 shares of $2 par April 1 Received $32,000 cash to begin the company in exchange for 16,000 shares value common stock. 2 Signed a lease for space on the beach and paid $1.200 for the first month's rent. 2 Purchased computer equipment for $2,800. 2 Hired Katie Weekly to help out with rentals and tours at $15/hr. 3 Purchased kayaks for $6,000 on account. 4 Purchased office supplies on account for $340. 7 Rented kayaks to a group of students for $1,300 cash. 15 Paid wages of $1,200 to Katie. 15 Provided tour and kayaks to AP biology class at local high school on account, $2,400. 16 Received $120 bill from Virginia Power for connection fee. 20 Paid local newspaper $300 for ad for April. 22 Received $500 cash for kayak rental to vacationers. 25 Paid $160 bill for cell phone. 28 Paid $1,000 on account related to April 3 purchase on account. 28 Provided sunset kayak tour and received $350 cash. 30 Received $2,400 from school system for April 15 tour on account. 30 Rented kayaks on account to Brock Environmental Center, $2,100. 30 Paid wages to Katie in the amount of $1,050. May 1 Matt contributed land on the river worth $250,000 and a small building to use as a rental office worth $80,000 in exchange for 20,000 shares of $2 par value common stock. (Credit Common stock $40,000, and Paid In Capital in Excess of Par $290,000.) 1 Prepaid $4,800 for four months' rent on beach space. 2 Purchased additional kayaks by signing a note payable for $7,700. 2 Received $250 electric bill from Virginia Power. 4 Bought office supplies on account for $260. 4 Rented kayaks to school group for $1,800, but will be paid next month. 5 Received $1,900 cash for kayak rental to customers. 7 Purchased paddle boards for $ 3,600 on account. 8 Received payment from Brock Environmental Center for April 30 rental. 8 Received $3,750 cash for kayak and paddle board rentals to customers. 8 Paid $4,800 for a two year insurance policy that began April 1. 9 Received $850 cash for paddle board rentals. 11 Received a $1,500 deposit from the Botanical Gardens for a sunset paddle board tour scheduled for June 7. 11 Paid Virginia Power for bill dated April 16. 15 Paid Katie for hours worked, $1,200. 16 Paid $5,000 balance on April 3 purchase. 18 Paid $600 on account for purchase of office supplies. 20 Paid local newspaper $300 for ad for May.

Answer 1

Chesapeake Bay Kayak Rentals
Journal entries
Date	Account	Debit	Credit
1-Apr	Cash	$     32,000
	Common Stock		$     32,000
2-Apr	Rent expense	$        1,200
	Cash		$        1,200
2-Apr	Computer Equipment	$        2,800
	Cash		$        2,800
2-Apr	No entry
			$               -
3-Apr	Kayaks (Equipment)	$        6,000
	Accounts Payable		$        6,000
4-Apr	Office Supplies	$           340
	Accounts Payable		$           340
7-Apr	Cash	$        1,300
	Rental Revenue		$        1,300
15-Apr	Wages expense	$        1,200
	Cash		$        1,200
15-Apr	Accounts Receivable	$        2,400
	Rental Revenue		$        2,400
16-Apr	Utilities expense	$           120
	Accounts Payable		$           120
20-Apr	Advertising expense	$           300
	Cash		$           300
22-Apr	Cash	$           500
	Rental Revenue		$           500
25-Apr	Telephone expense	$           160
	Cash		$           160
28-Apr	Accounts Payable	$        1,000
	Cash		$        1,000
28-Apr	Cash	$           350
	Rental Revenue		$           350
30-Apr	Cash	$        2,400
	Accounts Receivable		$        2,400
30-Apr	Accounts Receivable	$        2,100
	Rental Revenue		$        2,100
30-Apr	Wages expense	$        1,050
	Cash		$        1,050
May
1-May	Land	$   250,000
	Building	$     80,000
	Common Stock		$     40,000
	Paid in Capital in Excess of Par		$   290,000
1-May	Prepaid Rent	$        4,800
	Cash		$        4,800
2-May	Kayaks (Equipment)	$        7,700
	Notes Payable		$        7,700
2-May	Utilities expense	$           250
	Accounts Payable		$           250
4-May	Office Supplies	$           260
	Accounts Payable		$           260
4-May	Accounts Receivable	$        1,800
	Rental Revenue		$        1,800
5-May	Cash	$        1,900
	Rental Revenue		$        1,900
7-May	Paddle Boards (Equipment)	$        3,600
	Accounts Payable		$        3,600
8-May	Cash	$        2,100
	Accounts Receivable		$        2,100
8-May	Cash	$        3,750
	Rental Revenue		$        3,750
8-May	Prepaid Insurance	$        4,800
	Cash		$        4,800
9-May	Cash	$           850
	Rental Revenue		$           850
11-May	Cash	$        1,500
	Unearned Revenue		$        1,500
11-May	Accounts Payable	$           120
	Cash		$           120
15-May	Wages expense	$        1,200
	Cash		$        1,200
16-May	Accounts Payable	$        5,000
	Cash		$        5,000
18-May	Accounts Payable	$           600
	Cash		$           600
20-May	Advertising expense	$           300
	Cash		$           300
21-May	Accounts Receivable	$        2,700
	Rental Revenue		$        2,700
22-May	Cash	$           980
	Rental Revenue		$           980
26-May	Telephone expense	$           180
	Cash		$           180
28-May	Accounts Payable	$        3,600
	Cash		$        3,600
28-May	Cash	$        6,800
	Rental Revenue		$        6,800
29-May	Notes Payable	$        1,100
	Cash		$        1,100
31-May	Wages expense	$        1,380
	Cash		$        1,380

Date Credit Date Debit Date Prepaid Insurance Debit Date Prepaid Rent Credit Chesapeake Bay Kayak Rentals T Accounts Date Debit Date Credit Cash 1-Apr $32,000 2-Apr $ 1,200 7-Apr $ 1,300 2-Apr $ 2,800 22-Apr $ 500 15-Apr $ 1,200 28-Apr $ 350 20-Apr $ 300 30-Apr $ 2,400 25-Apr $ 160 28-Apr $1,000 30-Apr $ 1,050 Date Debit Date Credit Accounts Receivable 15-Apr $ 2,400 30-Apr $ 2,400 30-Apr $ 2,100 8-May $ 2,100 8-May $ 4,800 1-May $ 4,800 4-May $ 1,800 21-May $ 2,700 5-May $ 1,900 8-May $ 2,100 8-May $ 3,750 9-May $ 850 11-May $ 1,500 22-May $ 980 28-May $ 6,800 1-May $ 4,800 8-May $ 4,800 11-May $ 120 15-May $ 1,200 16-May $ 5,000 18-May $ 600 20-May $ 300 26-May $ 180 28-May $ 3,600 29-May $ 1,100 31-May $ 1,380 Bal. $ 4,500 Bal. Bal. Bal. $ 23,640 Office Supplies 4-Apr $ 340 $ 4,800 Building $ 4,800 Accum. Depr.- Building land 4-May $ 260 1-May $ 250,000 1-May $ 80,000 Bal. . Bal. $ 600 Computer Equipment 2-Apr $ 2,800 $ 250,000 Accum. Depr. - Computer Equip Bal. $ 80,000 Kayaks (Equipment) 3-Apr $ 6,000 Bal. $ Accum. Depr. - Kayaks 2-May $ 7,700 Bal. . Bal. $ $ 2,800 Paddle Boards (Equipment) Bal. $ Accum. Depr. - Paddle Boards Wages Payable Bal. $ 13,700 Accounts Payable 28-Apr $ 1,000 3-Apr $ 6,000 4-Apr $ 340 16-Apr $ 120 7-May $ 3,600 11-May $ 120 16-May $ 5,000 18-May $ 600 28-May $ 3,600 2-May $ 250 4-May $ 260 7-May $ 3,600 Bal. $ 250 Bal. $ Bal. $ 3,600 Notes Payable 29-May $ 1,100 2-May $ 7,700 Bal. $ . Unearned Revenue 11-May $ 1,500 Bal. $ 6,600 Bal. $ 1,500

Paid in Capital in Excess of Par Retained Earnings Common Stock 1-Apr $ 32,000 Rental Revenue 7-Apr $ 1,300 15-Apr $ 2,400 22-Apr $ 500 28-Apr $ 350 30-Apr $ 2,100 1-May $ 40,000 1-May $ 290,000 4-May $ 1,800 5-May $ 1,900 8-May $ 3,750 9-May $ 850 21-May $ 2,700 22-May $ 980 28-May $ 6,800 $ 72,000 $ 25,430 Bal. Advertising expense 20-Apr $ 300 Bal. $ 290,000 Depreciation expense Bal. Insurance expense Bal. Rent expense 2-Apr $ 1,200 20-May $ 300 Bal. $ 600 Supplies expense Bal. $ - Utilities expense 16-Apr $ 120 Bal. $ - Telephone expense 25-Apr $ 160 Bal. $ 1,200 Wages expense 15-Apr $ 1,200 30-Apr $ 1,050 2-May $ 250 26-May $ 180 15-May $ 1,200 31-May $ 1,380 Bal. $ Bal. $ 370 Bal. $ 340 Bal. $ 4,830

Chesapeake Bay Kayak Rentals	Unadjusted TB
Account Names	Debit	Credit
Cash	23,640
Accounts Receivable	4,500
Prepaid Insurance	4,800
Prepaid Rent	4,800
Office Supplies	600
Land	250,000
Building	80,000
Accumulated Depreciation-Building		-
Computer Equipment	2,800
Accumulated Depreciation-Computer Equip		-
Kayaks (Equipment)	13,700
Accumulated Depreciation-Kayaks		-
Paddle Boards (Equipment)	3,600
Accumulated Depreciation-Paddle Boards		-
Accounts Payable		250
Wages Payable		-
Notes Payable		6,600
Unearned Revenue		1,500
Common Stock		72,000
Paid in Capital in Excess of Par		290,000
Retained Earnings		-
Rental Revenue		25,430
Advertising expense	600
Depreciation expense	-
Insurance expense	-
Rent expense	1,200
Supplies expense	-
Utilities expense	370
Telephone expense	340
Wages expense	4,830
Totals	395,780	395,780