Crane Marina has 300 available slips that rent for $700 per season. Payments must be made in full by the start of the boating season, April 1, 2026. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be reserved if paid for by December 31, 2026. Under a new policy, if payment for 2027 season slips is made by December 31, 2026, a 5% discount is allowed. If payment for 2028 season slips is made by December 31, 2026, renters get a 18% discount (this promotion hopefully will provide cash flow for major dock repairs), On December 31, 2025, all 300 slips for the 2026 season were rented at full price. On December 31, 2026, 199 slips were reserved and paid for the 2027 boating season, and 53 slips were reserved and paid for the 2028 boating season. (a) Prepare the appropriate journal entries for December 31, 2025, and December 31, 2026. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is mauired select "No entry for the account titles and enter for the
Crane Marina has 300 available slips that rent for $700 per season. Payments must be made in full by the start of the boating season, April 1, 2026. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be reserved if paid for by December 31, 2026. Under a new policy, if payment for 2027 season slips is made by December 31, 2026, a 5% discount is allowed. If payment for 2028 season slips is made by December 31, 2026, renters get a 18% discount (this promotion hopefully will provide cash flow for major dock repairs), On December 31, 2025, all 300 slips for the 2026 season were rented at full price. On December 31, 2026, 199 slips were reserved and paid for the 2027 boating season, and 53 slips were reserved and paid for the 2028 boating season. (a) Prepare the appropriate journal entries for December 31, 2025, and December 31, 2026. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is mauired select "No entry for the account titles and enter for the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Crane Marina has 300 available slips that rent for $700 per season. Payments must be made in full by the start of the boating season,
April 1, 2026. The boating season ends October 31, and the marina has a December 31 year-end. Slips for future seasons may be
reserved if paid for by December 31, 2026. Under a new policy, if payment for 2027 season slips is made by December 31, 2026, a 5%
discount is allowed. If payment for 2028 season slips is made by December 31, 2026, renters get a 18% discount (this promotion
hopefully will provide cash flow for major dock repairs),
On December 31, 2025, all 300 slips for the 2026 season were rented at full price. On December 31, 2026, 199 slips were reserved
and paid for the 2027 boating season, and 53 slips were reserved and paid for the 2028 boating season.
(a) Prepare the appropriate journal entries for December 31, 2025, and December 31, 2026. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for the
amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem)
Account Titles and Explanation
Date
(To record 2026 revenue.)
(To record 2027 revenue.)
(To record 2028 revenue.)
4
Debit
Credit
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