1. James Haley owned a sailboat and was tired of his current job. He decided to open a business that provides day sails to tourists in his hometown. Prepare journal entries to record the following transactions. May 1 Haley invested $20,000 cash and his sailboat valued at $90,000 in the business. May 2 Haley paid $3,000 cash for office equipment to help him keep track of business activities.. May 3 Haley bought sailing supplies costing $2,500 on credit. May 4 Haley negotiated with the harbor master and paid $500 cash for the first month's dock rental. May 5 Haley paid $1,800 cash for a six-month insurance policy. Haley received $2,000 cash from clients for his first tour. May 10 May 12 Haley provided a $3,500 tour on credit, the customer has agreed to pay within 10 days May 19 Haley paid for the sailing supplies originally purchased on May 3. May 22 May 25 Haley receives payment on the account from the client entry on May 12. Haley received $2,750 cash for additional tours. Haley paid his deck hand a salary of $1,000. Haley withdrew $2,000 for personal use. May 31 May 31

1. James Haley owned a sailboat and was tired of his current job. He decided to open a business that provides day sails to tourists in his hometown. Prepare journal entries to record the following transactions. May 1 Haley invested $20,000 cash and his sailboat valued at $90,000 in the business. May 2 Haley paid $3,000 cash for office equipment to help him keep track of business activities.. May 3 Haley bought sailing supplies costing $2,500 on credit. May 4 Haley negotiated with the harbor master and paid $500 cash for the first month's dock rental. May 5 Haley paid $1,800 cash for a six-month insurance policy. Haley received $2,000 cash from clients for his first tour. May 10 May 12 Haley provided a $3,500 tour on credit, the customer has agreed to pay within 10 days May 19 Haley paid for the sailing supplies originally purchased on May 3. May 22 May 25 Haley receives payment on the account from the client entry on May 12. Haley received $2,750 cash for additional tours. Haley paid his deck hand a salary of $1,000. Haley withdrew $2,000 for personal use. May 31 May 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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