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P2.2B (LO 2) AP Mountain Adventure Travel Tours was started on May 1 by Dustin Tanner. The following events and transactions are for May: Journalize transactions. May 1 Tanner invested $70,000 cash in the business. 3 Purchased a country resort for $355,000, paying $35,000 cash and signing a five-year, 4.5% note payable for the balance. The $355,000 purchase price consisted of land $225,000, building $75,000, and equipment $55,000. 3 Obtained a one-year insurance policy effective May 1 for $9,360. Paid the first month's premium of $780. Paid $1,950 for advertising expenses. 8 15 Received $5,400 cash from customers for travel services provided. 16 Paid salaries to employees, $2,600. 20 Billed a customer, Celtic Fern Ltd., $2,750 for bus tours provided. Celtic Fern Ltd. paid $500 cash and agreed to pay the amount owing within 10 days. 22 Hired a manager to start June 1 at a salary of $4,000 per month. 29 Received the balance owing cash from Celtic Fern Ltd. for the May 20 transaction. 30 Received $5.750 cash for travel services provided. 31 Paid $6,533 on the note payable, of which $1,200 is interest expense. 31 Dustin Tanner, the owner, withdrew $1,800 cash for his personal use. 31 Paid salaries to employees, $3,800. The company's chart of accounts includes the following accounts: Cash; Accounts Receivable; Land; Building; Equipment; Accounts Payable; Notes Payable; D. Tanner, Capital; D. Tanner, Drawings; Service Revenue; Advertising Expense; Insurance Expense; Salaries Expense; and Interest Expense. Instructions Journalize the May transactions.

P2.2B (LO 2) AP Mountain Adventure Travel Tours was started on May 1 by Dustin Tanner. The following events and transactions are for May: Journalize transactions. May 1 Tanner invested $70,000 cash in the business. 3 Purchased a country resort for $355,000, paying $35,000 cash and signing a five-year, 4.5% note payable for the balance. The $355,000 purchase price consisted of land $225,000, building $75,000, and equipment $55,000. 3 Obtained a one-year insurance policy effective May 1 for $9,360. Paid the first month's premium of $780. Paid $1,950 for advertising expenses. 8 15 Received $5,400 cash from customers for travel services provided. 16 Paid salaries to employees, $2,600. 20 Billed a customer, Celtic Fern Ltd., $2,750 for bus tours provided. Celtic Fern Ltd. paid $500 cash and agreed to pay the amount owing within 10 days. 22 Hired a manager to start June 1 at a salary of $4,000 per month. 29 Received the balance owing cash from Celtic Fern Ltd. for the May 20 transaction. 30 Received $5.750 cash for travel services provided. 31 Paid $6,533 on the note payable, of which $1,200 is interest expense. 31 Dustin Tanner, the owner, withdrew $1,800 cash for his personal use. 31 Paid salaries to employees, $3,800. The company's chart of accounts includes the following accounts: Cash; Accounts Receivable; Land; Building; Equipment; Accounts Payable; Notes Payable; D. Tanner, Capital; D. Tanner, Drawings; Service Revenue; Advertising Expense; Insurance Expense; Salaries Expense; and Interest Expense. Instructions Journalize the May transactions.

FINANCIAL ACCOUNTING
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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P2.2B (LO 2) AP Mountain Adventure Travel Tours was started on May 1 by Dustin Tanner. The following events and transactions are for May: Journalize transactions. May 1 Tanner invested $70,000 cash in the business. 3 Purchased a country resort for $355,000, paying $35,000 cash and signing a five-year, 4.5% note payable for the balance. The $355,000 purchase price consisted of land $225,000, building $75,000, and equipment $55,000. Obtained a one-year insurance policy effective May 1 for $9,360. Paid the first month's premium of $780. Paid $1,950 for advertising expenses. 3 8 15 Received $5,400 cash from customers for travel services provided. 16 Paid salaries to employees, $2,600. 20 Billed a customer, Celtic Fern Ltd., $2,750 for bus tours provided. Celtic Fern Ltd. paid $500 cash and agreed to pay the amount owing within 10 days. 22 Hired a manager to start June 1 at a salary of $4,000 per month. 29 Received the balance owing cash from Celtic Fern Ltd. for the May 20 transaction. 30 Received $5,750 cash for travel services provided. 31 Paid $6,533 on the note payable, of which $1,200 is interest expense. 31 Dustin Tanner, the owner, withdrew $1,800 cash for his personal use. 31 Paid salaries to employees, $3,800. The company's chart of accounts includes the following accounts: Cash; Accounts Receivable; Land; Building; Equipment; Accounts Payable; Notes Payable; D. Tanner, Capital; D. Tanner, Drawings; Service Revenue; Advertising Expense; Insurance Expense; Salaries Expense; and Interest Expense. Instructions Journalize the May transactions.
Transcribed Image Text:P2.2B (LO 2) AP Mountain Adventure Travel Tours was started on May 1 by Dustin Tanner. The following events and transactions are for May: Journalize transactions. May 1 Tanner invested $70,000 cash in the business. 3 Purchased a country resort for $355,000, paying $35,000 cash and signing a five-year, 4.5% note payable for the balance. The $355,000 purchase price consisted of land $225,000, building $75,000, and equipment $55,000. Obtained a one-year insurance policy effective May 1 for $9,360. Paid the first month's premium of $780. Paid $1,950 for advertising expenses. 3 8 15 Received $5,400 cash from customers for travel services provided. 16 Paid salaries to employees, $2,600. 20 Billed a customer, Celtic Fern Ltd., $2,750 for bus tours provided. Celtic Fern Ltd. paid $500 cash and agreed to pay the amount owing within 10 days. 22 Hired a manager to start June 1 at a salary of $4,000 per month. 29 Received the balance owing cash from Celtic Fern Ltd. for the May 20 transaction. 30 Received $5,750 cash for travel services provided. 31 Paid $6,533 on the note payable, of which $1,200 is interest expense. 31 Dustin Tanner, the owner, withdrew $1,800 cash for his personal use. 31 Paid salaries to employees, $3,800. The company's chart of accounts includes the following accounts: Cash; Accounts Receivable; Land; Building; Equipment; Accounts Payable; Notes Payable; D. Tanner, Capital; D. Tanner, Drawings; Service Revenue; Advertising Expense; Insurance Expense; Salaries Expense; and Interest Expense. Instructions Journalize the May transactions.
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