Reference no: EM132668128
Question - Maquina Lodge, owned by Bob Palmiter, had the following account balances, in random order, on December 15, 2020 (all accounts have their "normal" balances):
Guest revenue $309,000
Furniture $57,800
Accounts receivable 8,800
Cash 3,800
Equipment rental expense 11,800
Notes receivable 26,000
B. Palmiter, capital 209,800
Utilities expense 21,000
Supplies expense 2,800
Supplies inventory 5,800
Mortgage payable 30,000
Accounts payable 12,000
Salaries expense 81,000
Office equipment 10,200
Insurance expense 6,800
Boating equipment 96,800
Building 200,000
Land 30,000
The following events also took place during the final weeks of the year:
Dec.17 Signed an agreement to let a retired professor move in during the off season for a long stay, beginning today. The monthly rate is $3,200 payable at the beginning of each month. The professor paid $1,550 cash for the remainder of December.
Dec.18 Collected an $18,000 note owed to Maquina and collected interest of $2,400 cash.
Dec.21 Purchased boating equipment for $14,000 from Boats Unlimited. Maquina Lodge paid $5,000 cash, provided room rentals for $1,600 to Boats Unlimited, and promised to pay the balance in 60 days.
Dec.23 Collected $2,800 cash for rooms for a conference held from December 16 to 23.
Dec.24 Maquina Lodge paid $2,000 cash owing on the mortgage.
Dec.27 Palmiter withdrew $14,000 cash for personal use.
Dec.29 Provided meeting rooms to a lawyer for $2,000. The lawyer paid Maquina Lodge $1,100 cash and provided legal work for the balance.
Dec.31 The accountant discovered that an error had been made in posting an entry to the Guest Revenue account on December 15. The entry was correctly journalized, but $4,200 was accidentally posted as $2,400 in the account.
Required -
1. Where appropriate, record each transaction from December 17 to 29 in the journal. Include an explanation for each entry.
2. Enter the correct opening balances for each T-account dated as December 15.
3. Post entries in T-accounts and calculate the balance of each one.
4. Prepare the unadjusted trial balance of Maquina Lodge at December 31, 2020.