Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers' boats. Lucky Fisher Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisher's boats will be kept in identified slips in the marina. Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 45- foot slips per boat for a three-year period. Warren frequently rearranges its customers' boats to meet the needs of new contracts. Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their specific requests. Lucky Fisher paid $22,000 on March 1, 2024, for the first year's accommodations. ⚫ The market rate of interest is 5%. Required: Prepare the appropriate entry(s) for Lucky Fisher Fleet at March 1, the commencement of the agreement. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) View transaction list Journal entry worksheet < Record the payment of $22,000 on March 1, 2024, for the first year's accommodations. Note: Enter debits before credits. Date March 01, 2024 General Journal Debit Credit Record entry Clear entry View general journal
Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers' boats. Lucky Fisher Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisher's boats will be kept in identified slips in the marina. Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 45- foot slips per boat for a three-year period. Warren frequently rearranges its customers' boats to meet the needs of new contracts. Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their specific requests. Lucky Fisher paid $22,000 on March 1, 2024, for the first year's accommodations. ⚫ The market rate of interest is 5%. Required: Prepare the appropriate entry(s) for Lucky Fisher Fleet at March 1, the commencement of the agreement. Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) View transaction list Journal entry worksheet < Record the payment of $22,000 on March 1, 2024, for the first year's accommodations. Note: Enter debits before credits. Date March 01, 2024 General Journal Debit Credit Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide
slips to house the customers' boats. Lucky Fisher Fleet contracted with Warren to provide space for four of its fishing boats.
The contract specifies that Lucky Fisher's boats will be kept in identified slips in the marina.
Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 45-
foot slips per boat for a three-year period. Warren frequently rearranges its customers' boats to meet the needs of new contracts.
Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their specific
requests.
Lucky Fisher paid $22,000 on March 1, 2024, for the first year's accommodations.
⚫ The market rate of interest is 5%.
Required:
Prepare the appropriate entry(s) for Lucky Fisher Fleet at March 1, the commencement of the agreement.
Note: If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Use tables, Excel,
or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
View transaction list
Journal entry worksheet
<
Record the payment of $22,000 on March 1, 2024, for the first year's
accommodations.
Note: Enter debits before credits.
Date
March 01, 2024
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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