Hawaiian Corporate Holidays arranges events for large corporations and trusts. It books hotel rooms, airline tickets, transportation and any other venues a company requests. It normally bills the companies ahead of the event, recording the invoice as unearned revenue. Once the event is complete, an entry is made to reclassify the amount from unearned revenues to Airline Sales or Event Sales.     Record the following transactions in the general journal using the account names shown in the Chart of Accounts (page 3). Skip a line between each entry. You do not need to include explanations.   Do not input general ledger account numbers in the Post Ref column of the journal until you post the journal entry to the ledger.   Mar 1     You have recently formed a corporation called Hawaiian Corporate Holidays (HCH).  You invest $40,000 in a checking account in the company’s name at Bank of Hawaii.  Since the company is a corporation, it issues you 8,000 shares of $5 par value common stock in exchange for your capital contribution. Mar 2     You have a friend, Buddy Rich, who wants to invest in HCH.  He buys 4,000 shares of stock at $5 per share. Mar 3     You rented office space for $2,500 per month. You paid rent for March $2,500 and paid the required security deposit $5,000. Mar 5     Received and paid a bill for marketing services provided by Aloha Ad Agency, $2,000 Mar 6     Purchased office furniture and equipment, $15,000. Paid using company credit card.   Mar 7     Paid $2,400 for insurance policy effective Mar 1, 2019 through Aug 31, 2020 Mar 8     Purchased office supplies on account from Office Depot, $1,500 Mar 9     Recorded invoice billed to Microsoft Corporation for a corporate meeting scheduled at the Hilton, $20,000. Mar 10   Received bill from HELCO for electricity, $200 (didn’t pay yet) Mar 11   Recorded invoice billed to KFC Corp., $10,000 Mar 12   Received a bill from the Hilton, $10,000 for Microsoft event. Mar 13   Received and paid phone/internet bill from ATT, $175 Mar 14   Established a petty cash fund, $100 Mar 15   Received a deposit from the Metropolitan Insurance Company for reservations for July 4, 2019, $5,000 Mar 16   Sent payment to Orchid at Mauna Lani to reserve rooms for July 4, 2000, $3,000 Mar 29   Microsoft event concludes; move unearned revenue to Event Sales, see Mar 9 invoice to Microsoft. Mar 30   Received Bank Statement from Bank of Hawaii – need to reconcile Apr 1      Paid April rent, $2,500 Apr 2      Received payment for Mar 9 invoice, Microsoft Corporation, $20,000 Apr 3      Paid the Hilton for the Mar 12 bill. Apr 4      Received and paid a bill for marketing services provided by Aloha Advertising Agency, $2,000 Apr 5      Received and paid a bill from Hawaiian Airlines, $2,500 Apr 6      Billed KFC Corporation for airfare, $3,000 Apr 7      KFC event concludes, move unearned revenue to Event Sales, see Mar 11 invoice KFC, $10,000 Apr 8      Paid for office supplies purchased on account Mar 8 from Office Depot Apr 9      Received and paid bill from Hilton for KFC event, $5,500 Apr 10    Paid Mar 10 bill from HELCO Apr 11    Received payment from KFC Corp for Mar 11 and Apr 6 invoices. Apr 13    Received and paid utility bill from HELCO, $205 Apr 14    Paid credit card bill, $15,000 Apr 15    Upon conclusion of event, billed The Chase Family Trust for the Spring in Hawaii package, $15,000 Apr 15    Received invoice from Marriott for $6,000 for Spring in Hawaii package. Apr 17    Reimbursed the petty cash fund: miscellaneous expense $66, office supplies expense $22 Apr 18    Upon conclusion of event, billed The Brown Family Foundation for Spring in Hawaii package, $7,000 Apr 19    Received bill from Hilton for Spring in Hawaii package (Brown Family Trust), $3,000 Apr 20    Received bill from United Airlines, $5,600 related to Chase and Brown Family Trust events Apr 21    Received partial payment from The Chase Family Trust, 80% of original invoice Apr 22    Paid Apr 15 bill from Marriott Apr 23    Received phone/internet bill from ATT, $190 Apr 30    Paid dividends of $0.10 per share (12,000 shares)   Chart of Accounts   Account Number Account Name 1010 Cash (BOH) 1015 Petty Cash 1025 Accounts Receivable 1030 Office Supplies 1035 Prepaid Insurance 1050 Security Deposits 1100 Office Furniture & Equipment 1101 Accumulated Depreciation: Office F&E 2010 Account Payable 2020 Credit Card Payable 2030 HI General Excise Taxes Payable 2050 Unearned Revenue 3010 Common Stock 3100 Retained Earnings 3200 Dividends 4010 Airline Sales 4020 Event Sales 5010 Cost of Goods Sold - Airline 5015 Cost of Goods Sold - Hotel 5020 HI General Excise Tax Expense 5025 Insurance Expense 5050 Marketing Expense 5060 Miscellaneous Expense 5070 Office Supplies Expense                                                          5080 Phone/Internet Expense                                                         5085 Rent expense 5095 Utilities expense

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hawaiian Corporate Holidays arranges events for large corporations and trusts. It books hotel rooms, airline tickets, transportation and any other venues a company requests. It normally bills the companies ahead of the event, recording the invoice as unearned revenue. Once the event is complete, an entry is made to reclassify the amount from unearned revenues to Airline Sales or Event Sales.  

 

Record the following transactions in the general journal using the account names shown in the Chart of Accounts (page 3). Skip a line between each entry. You do not need to include explanations.

 

Do not input general ledger account numbers in the Post Ref column of the journal until you post the journal entry to the ledger.

 

Mar 1     You have recently formed a corporation called Hawaiian Corporate Holidays (HCH).  You invest $40,000 in a checking account in the company’s name at Bank of Hawaii.  Since the company is a corporation, it issues you 8,000 shares of $5 par value common stock in exchange for your capital contribution.

Mar 2     You have a friend, Buddy Rich, who wants to invest in HCH.  He buys 4,000 shares of stock at $5 per share.

Mar 3     You rented office space for $2,500 per month. You paid rent for March $2,500 and paid the required security deposit $5,000.

Mar 5     Received and paid a bill for marketing services provided by Aloha Ad Agency, $2,000

Mar 6     Purchased office furniture and equipment, $15,000. Paid using company credit card.  

Mar 7     Paid $2,400 for insurance policy effective Mar 1, 2019 through Aug 31, 2020

Mar 8     Purchased office supplies on account from Office Depot, $1,500

Mar 9     Recorded invoice billed to Microsoft Corporation for a corporate meeting scheduled at the Hilton, $20,000.

Mar 10   Received bill from HELCO for electricity, $200 (didn’t pay yet)

Mar 11   Recorded invoice billed to KFC Corp., $10,000

Mar 12   Received a bill from the Hilton, $10,000 for Microsoft event.

Mar 13   Received and paid phone/internet bill from ATT, $175

Mar 14   Established a petty cash fund, $100

Mar 15   Received a deposit from the Metropolitan Insurance Company for reservations for July 4, 2019, $5,000

Mar 16   Sent payment to Orchid at Mauna Lani to reserve rooms for July 4, 2000, $3,000

Mar 29   Microsoft event concludes; move unearned revenue to Event Sales, see Mar 9 invoice to Microsoft.

Mar 30   Received Bank Statement from Bank of Hawaii – need to reconcile

Apr 1      Paid April rent, $2,500

Apr 2      Received payment for Mar 9 invoice, Microsoft Corporation, $20,000

Apr 3      Paid the Hilton for the Mar 12 bill.

Apr 4      Received and paid a bill for marketing services provided by Aloha Advertising Agency, $2,000

Apr 5      Received and paid a bill from Hawaiian Airlines, $2,500

Apr 6      Billed KFC Corporation for airfare, $3,000

Apr 7      KFC event concludes, move unearned revenue to Event Sales, see Mar 11 invoice KFC, $10,000

Apr 8      Paid for office supplies purchased on account Mar 8 from Office Depot

Apr 9      Received and paid bill from Hilton for KFC event, $5,500

Apr 10    Paid Mar 10 bill from HELCO

Apr 11    Received payment from KFC Corp for Mar 11 and Apr 6 invoices.

Apr 13    Received and paid utility bill from HELCO, $205

Apr 14    Paid credit card bill, $15,000

Apr 15    Upon conclusion of event, billed The Chase Family Trust for the Spring in Hawaii package, $15,000

Apr 15    Received invoice from Marriott for $6,000 for Spring in Hawaii package.

Apr 17    Reimbursed the petty cash fund: miscellaneous expense $66, office supplies expense $22

Apr 18    Upon conclusion of event, billed The Brown Family Foundation for Spring in Hawaii package, $7,000

Apr 19    Received bill from Hilton for Spring in Hawaii package (Brown Family Trust), $3,000

Apr 20    Received bill from United Airlines, $5,600 related to Chase and Brown Family Trust events

Apr 21    Received partial payment from The Chase Family Trust, 80% of original invoice

Apr 22    Paid Apr 15 bill from Marriott

Apr 23    Received phone/internet bill from ATT, $190

Apr 30    Paid dividends of $0.10 per share (12,000 shares)

 

Chart of Accounts

 

Account Number

Account Name

1010

Cash (BOH)

1015

Petty Cash

1025

Accounts Receivable

1030

Office Supplies

1035

Prepaid Insurance

1050

Security Deposits

1100

Office Furniture & Equipment

1101

Accumulated Depreciation: Office F&E

2010

Account Payable

2020

Credit Card Payable

2030

HI General Excise Taxes Payable

2050

Unearned Revenue

3010

Common Stock

3100

Retained Earnings

3200

Dividends

4010

Airline Sales

4020

Event Sales

5010

Cost of Goods Sold - Airline

5015

Cost of Goods Sold - Hotel

5020

HI General Excise Tax Expense

5025

Insurance Expense

5050

Marketing Expense

5060

Miscellaneous Expense

5070

Office Supplies Expense                                                         

5080

Phone/Internet Expense                                                        

5085

Rent expense

5095

Utilities expense

                                                                       

                                                                       

 

 

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