Prepare the journal entries for each transaction.

Individual Income Taxes
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Chapter18: Accounting Periods And Methods
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RiverHawk Expeditions provides guided tours in scenic mountainous areas. After the first 11 months of operations in 2021, RiverHawk has the following account balances.
  

RIVERHAWK EXPEDITIONS
Trial Balance
November 30, 2021
 
Accounts Debits   Credits  
Cash $ 10,000        
Accounts Receivable   4,900        
Prepaid Insurance   800        
Equipment   24,500        
Land   176,000        
Accounts Payable       $ 3,700  
Notes Payable         50,400  
Common Stock         128,000  
Retained Earnings         14,500  
Dividends   5,400        
Service Revenue         75,400  
Advertising Expense   11,400        
Salaries Expense   28,700        
Rent Expense   10,300        
Totals $ 272,000   $ 272,000  
 


The following transactions occur during December 2021:
 

December   1   Pay rent for mountain lodges for the month of December, $1,300.
December   5   Provide guided tour to customers in Grand Teton National Park for cash, $3,200.
December   8   Borrow from a local bank by signing a note payable, $14,000. The note is due in one year with a 6% interest rate.
December   12   Receive cash from customers as payment for a guided tour that occurred on November 28, $3,900.
December   13   Issue additional shares of common stock for cash, $24,000.
December   15   Pay employee salaries for the first half of the month, $1,600.
December   17   Purchase advertising on several local radio stations to be aired during the following two weeks, $1,400.
December   22   Provide guided tour to customers in Yellowstone National Park on account, $3,600.
December   23   One of the customers from the December 22 tour claims to have seen the legendary creature Bigfoot. The company believes this exciting news will create additional revenue of $24,000 next year.
December   26   Purchase several pieces of hiking equipment to give customers a more enjoyable adventure, such as night-vision goggles, GPS, long-range binoculars, and video cameras, for cash, $28,900.
December   28   Pay cash on accounts payable, $1,900.
December   31   Pay dividends to stockholders, $2,400.

Prepare the journal entries for each transaction.

Expert Solution
Step 1

Journal Entries are the most important process to follow with high concentration, because they lead to posting in ledgers, preparing trial balance, income statement & balance sheet.

Therefore, recording journal entries properly gives assurance of less mistakes in financial statements.

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