Chapter 3, Problem 1A

Why Does It Matter?

ECOTOUR EXPEDITIONS, INC., Jamestown, Rhode Island

You probably have never imagined the possibility of being an accountant who could have a direct impact on improving global ecosystems. Accountants who work for Ecotour Expeditions, Inc., an ecotourism company, might manage accounting details for guest air travel and accommodations, tour guide compensation, expedition revenue, and a variety of expenses. What type of accounting transactions would Ecotour Expeditions have? List 3 to 4 transactions and then record the journal entry for each transaction.

Example: Purchase safari jeep with cash, $42,500.

Safari Jeep    42,500

Cash    42,500