Reference no: EM132982418

Shark Bait, a charter deep sea fishing company, began business on 1/1/2021.  A summary of its business transactions are as follows.

1. 1/1/21: Bert and Ernie each invest $76,000 ($152,000 total) into the company and received 13,000 total shares of $2 par common stock.

2. On 3/1/21, the company purchased a large fishing boat for $31,000 of which had a down payment of $10,000 and the rest of borrowed from First Hawaiian Bank. The Note Payable's principle has a 6% annual interest rate due every 9-months while the principle is due at maturity date in 5 years. Make sure to book ALL regular journal entries for 2021 related to this entry.

3. Shark Bait purchased $9,400 of office supplies and lures from Huge Minnows Company on 3/1/21 on account.

4. Liability insurance was purchased on 3/1/21. The 18 month policy cost $7,100 and was paid in full.

5. Shark Bait paid half of what it owes to Huge Minnows Company on 4/1/21.

6. On 9/1/21, Shark Bait received $27,800 cash for a tour that would take place on 2/4/22.

7. Shark Bait provided fishing tours and received $37,000 from customers on 9/10/21.

8. On 10/2/21, Shark Bait received $2,800 cash for the sale of some unused lures that were bought on 3/1/21 for $1,000.

9. Operating expenses incurred and paid as of 12/31/21 which consists of:

Salaries: $6,000

Utilities: $9,000

Boat Gas: $3,000

Problem 1. Prepare Journal Entries in the General Journal

Problem 2. Post the journal entries to the General Ledger

Problem 3. Prepare Unadjusted Trial Balance as of 12/31/21.