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Problem - Taylor Marina has 300 available slips that rent for $700 per season. Payments must be made in full by the start of the boating season, April 1, 2021. The boating season ends October 31, and the marina has a December 31 year end. Slips for future seasons may be reserved if paid for by December 31, 2021. Under a new policy, if payment for 2022 season slips is made by December 31, 2021, a 8% discount is allowed. If payment for 2023 season slips is made by December 31, 2021, renters get a 19% discount (Taylor hopes this promotion will provide cash flow for major dock repairs.) On December 31, 2020, all 300 slips for the 2021 season were rented at full price. On December 31, 2021, 200 slips were reserved and paid for the 2022 boating season, and 60 slips were reserved and paid for the 2023 boating season.
Required - Prepare the appropriate journal entries for December 31, 2020, and December 31, 2021.
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