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
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
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 |
|
|
1030 |
Office Supplies |
|
1035 |
Prepaid Insurance |
|
1050 |
Security Deposits |
|
1100 |
Office Furniture & Equipment |
|
1101 |
|
|
2010 |
Account Payable |
|
2020 |
Credit Card Payable |
|
2030 |
HI General Excise Taxes Payable |
|
2050 |
Unearned Revenue |
|
3010 |
Common Stock |
|
3100 |
|
|
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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