St Thomas Yacht Services, Inc. had the following transactions during its first month of operations: Borrowed $50,000 from First Bank after signing a 10 year, 6% promissory note. Payments are due on the last day of the month. Dec 2 Dec 7 Signed lease and paid the landlord $1,200 rent for the current month. Purchased a one year insurance policy for $2,100. Purchased $1,800 of supplies on account. Dec 12 Dec 15 Dec 18 Paid $340 to have advertising materials to be used during the current month. Detailed 8 sailboats competing in the Maxi Yacht Rolex Cup this March. The bookkeeper sent an invoice for $10,000. Dec 23 Dec 25 Received $5,000 in advance from a customer to clean two 63 foot yachts next month. Paid $54 in wages to employees who cleaned Serendipity and $81 in wages to employees who distributed advertising materials. (Ignore payroll taxes for this problem). Sent a $2,200 invoice to Serendipity's Captain Samantha for services provided on account. Paid First Bank $555 for the first payment on the loan signed on December 2nd. Dec 29 Dec 30 Dec 31 Complete Step 2 of the Accounting Cycle: Prepare journal entries of the transactions.
St Thomas Yacht Services, Inc. had the following transactions during its first month of operations: Borrowed $50,000 from First Bank after signing a 10 year, 6% promissory note. Payments are due on the last day of the month. Dec 2 Dec 7 Signed lease and paid the landlord $1,200 rent for the current month. Purchased a one year insurance policy for $2,100. Purchased $1,800 of supplies on account. Dec 12 Dec 15 Dec 18 Paid $340 to have advertising materials to be used during the current month. Detailed 8 sailboats competing in the Maxi Yacht Rolex Cup this March. The bookkeeper sent an invoice for $10,000. Dec 23 Dec 25 Received $5,000 in advance from a customer to clean two 63 foot yachts next month. Paid $54 in wages to employees who cleaned Serendipity and $81 in wages to employees who distributed advertising materials. (Ignore payroll taxes for this problem). Sent a $2,200 invoice to Serendipity's Captain Samantha for services provided on account. Paid First Bank $555 for the first payment on the loan signed on December 2nd. Dec 29 Dec 30 Dec 31 Complete Step 2 of the Accounting Cycle: Prepare journal entries of the transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![St. Thomas Yacht Services, Inc. had the following transactions during its first month of operations:
/22]
Dec 2
Borrowed $50,000 from First Bank after signing a 10 year, 6% promissory note. Payments are due on the
last day of the month.
40)
20)
/28]
/15]
Dec 7
Signed lease and paid the landlord $1,200 rent for the current month.
Dec 12
Purchased a one year insurance policy for $2,100.
Purchased $1,800 of supplies on account.
Paid $340 to have advertising materials to be used during the current month.
Detailed 8 sailboats competing in the Maxi Yacht Rolex Cup this March. The bookkeeper sent an invoice
for $10,000.
Received $5,000 in advance from a customer to clean two 63 foot yachts next month.
Paid $54 in wages to employees who cleaned Serendipity and $81 in wages to employees who distributed
advertising materials. (Ignore payroll taxes for this problem).
Sent a $2,200 invoice to Serendipity's Captain Samantha for services provided on account.
Paid First Bank $555 for the first payment on the loan signed on December 2nd.
Dec 15
5)
Dec 18
30
Dec 23
Dec 25
Dec 29
Dec 30
Dec 31
Complete Step 2 of the Accounting Cycle: Prepare journal entries of the transactions.
Date
Description
Debit
Credit
Dec 2
Dec 7
Dec 12](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2f886cb-43b8-481b-b144-c73cca16ef3e%2F7f8f3553-c327-4aa8-823d-a59cba9cb7db%2F8pcuv2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:St. Thomas Yacht Services, Inc. had the following transactions during its first month of operations:
/22]
Dec 2
Borrowed $50,000 from First Bank after signing a 10 year, 6% promissory note. Payments are due on the
last day of the month.
40)
20)
/28]
/15]
Dec 7
Signed lease and paid the landlord $1,200 rent for the current month.
Dec 12
Purchased a one year insurance policy for $2,100.
Purchased $1,800 of supplies on account.
Paid $340 to have advertising materials to be used during the current month.
Detailed 8 sailboats competing in the Maxi Yacht Rolex Cup this March. The bookkeeper sent an invoice
for $10,000.
Received $5,000 in advance from a customer to clean two 63 foot yachts next month.
Paid $54 in wages to employees who cleaned Serendipity and $81 in wages to employees who distributed
advertising materials. (Ignore payroll taxes for this problem).
Sent a $2,200 invoice to Serendipity's Captain Samantha for services provided on account.
Paid First Bank $555 for the first payment on the loan signed on December 2nd.
Dec 15
5)
Dec 18
30
Dec 23
Dec 25
Dec 29
Dec 30
Dec 31
Complete Step 2 of the Accounting Cycle: Prepare journal entries of the transactions.
Date
Description
Debit
Credit
Dec 2
Dec 7
Dec 12

Transcribed Image Text:Dec 15
Dec 18
Dec 23
Dec 25
Dec 29
Dec 30
Dec 31
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