Bob Night opened "The General's Favorite Fishing Hole." The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques.Ledger balances for The General's Favorite Fishing Hole at the end of April are as follow:Accounts Payable$66,500Bob Night, Capital90,000Bob Night, Drawing6,000Cash130,650Fishing Boats60,000Food Supplies38,700Office Supplies500Postage Expense150Prepaid Insurance9,000Registration Fees171,700Rent Expense40,000Phone Expense1,200Utilities Expense2,000Wages Expense40,000 Adjustment information for the end of April is provided below.(a)Office supplies remaining on hand, $100.(b)Food supplies remaining on hand, $8,000.(c)Insurance expired during the month of April, $1,500.(d)Depreciation on the fishing boats for the month of April, $1,000.(e)Wages earned, but not yet paid, at the end of April, $500. Required:3. Prepare a trial balance on a work sheet.4. Complete the work sheet.

Accounting Worksheet: The accounting worksheet is a worksheet that helps in keeping track of each accounting cycle. In other words, a worksheet helps in recording or keeping all the necessary is stored and which is used for the preparation of financial statements. The columns included in the accounting worksheet are: a. Unadjusted Trial Balance: It is the trial balance that is prepared for the posting to ledger accounts. It is prepared to determine if all the debits equal credits. b. Adjustments: It is all the additional transactions that took place. The adjustment entries include adjustment of the tongue. c. Adjusted Trial Balance: After all the adjustments are made, the adjusted trial balance is prepared. d. Income Statement: It is one of the most important financial statements. It helps in determining financial performance in terms of profit or loss for a particular accounting period. e. Balance Sheet: It presents the financial position at a given date. Let us look into each of the broad accounts and its effect and normal balances. Assets: Debit Balance - If its value increases we debit it and if its value decreases we credit it. Liabilities- Credit Balance- If its value increases we debit it and if its value decreases we debit it. Equity: If its value increases we debit it and if its value decreases we debit it. Revenue: If its value increases we debit it and if its value decreases we debit it. Expenses: Debit Balance- If its value increases we debit it and if its value decreases we credit it.Transaction 1: Office supplies remaining on hand of $100. Here, the office supplies when used are to be considered as an expense for the business organization. Therefore, here the balance is shown as $100, which means $400 supplies were used and should be accounted for as a talent. Transaction 2: Food supplies remaining on hand of $8,000. Here, the food supplies are the inventory of the business organization. Any sale or decrease in the value of food supplies is directly accounted against the cost of goods sold. Therefore, the difference is $30,700 ($38,700 - $8,000) which is considered as the cost of goods sold is accounted for the value of inventory is reduced. Transaction 3: Insurance expired during the month of April $1,500. When expenses are paid in advance, they are termed as prepaid expenses. Therefore, when these expenses actually incurred, then the value of the asset is reduced and the expense account is accounted for the amount. Here, the insurance expense expired, and now it is to be incurred as an expense at $1,500. Transactions 4: Depreciation of boats of $1,000 for one method Here, the journal entry will be debiting the depreciation expense account and crediting accumulated depreciation at $1,000. Transaction 5: Wages incurred but not paid. As per the accrual basis of accounting, whenever the expenses incurred or when the revenues are earned, they have to account. Similarly, here the wage expense has been incurred the journal entry will be debiting wage expense account and crediting wage payable account. Let us now prepare the worksheet for all the transactions that took place during the accounting period. Conclusion: To conclude, we have completed the worksheet as required.

Answered: Bob Night opened "The General's…

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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Bob Night opened "The General's Favorite Fishing Hole." The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques.

Ledger balances for The General's Favorite Fishing Hole at the end of April are as follow:

Accounts Payable	$66,500
Bob Night, Capital	90,000
Bob Night, Drawing	6,000
Cash	130,650
Fishing Boats	60,000
Food Supplies	38,700
Office Supplies	500
Postage Expense	150
Prepaid Insurance	9,000
Registration Fees	171,700
Rent Expense	40,000
Phone Expense	1,200
Utilities Expense	2,000
Wages Expense	40,000

Adjustment information for the end of April is provided below.

(a)	Office supplies remaining on hand, $100.
(b)	Food supplies remaining on hand, $8,000.
(c)	Insurance expired during the month of April, $1,500.
(d)	Depreciation on the fishing boats for the month of April, $1,000.
(e)	Wages earned, but not yet paid, at the end of April, $500.

Required:

3. Prepare a trial balance on a work sheet.

4. Complete the work sheet.

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