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 EXPEDITIONSTrial BalanceNovember 30, 2021 AccountsDebits 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.

Name: RiverHawk Expeditions provides guided tours in scenic mountainous area
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Description: 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 EXPEDITIONSTrial BalanceNovember 30, 2021 AccountsDebits Credits Cash$1

Answered: Prepare the journal entries for each…

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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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.

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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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