Answer:
A.
a. Dr Cash $2,300,000
Cr Notes payable $2,300,000
b. Dr Equipment $98,000
Cr Cash $98,000
c.Dr Inventory $35,000
Cr Accounts payable $35,000
D. Dr Repair expense $62,000
Cr Cash $62,000
e. Dr Cash $390,000
Cr Unearned revenue $390,000
f. Dr Accounts receivable $700
Cr Sales revenue $700
Dr Cost of of goods sold $400
Cr Inventory $400
g. Dr Cash $320,000
Cr Sales revenue $320,000
h. Dr Cash $3,500
Cr Unearned revenue-deposit $3,500
i. Dr Accounts payable $17,500
Cr Cash $17,500
j. Dr Cash $400
Cr Accounts receivable $400
k. Dr Wages expense $245,000
Cr Cash $245,000
B. $1,300
Explanation:
A. Preparation of Journal entries
a. Dr Cash $2,300,000
Cr Notes payable $2,300,000
[To record cash borrowed from bank]
b. Dr Equipment $98,000
Cr Cash $98,000
[To record purchase of snowplow]
c.Dr Inventory $35,000
Cr Accounts payable $35, 000
[To record purchase of inventory on account]
D. Dr Repair expense $62,000
Cr Cash $62,000
[To record payment of repair expense]
e. Dr Cash $390,000
Cr Unearned revenue $390,000
[To record sale of season passes]
f. Dr Accounts receivable $700
Cr Sales revenue $700
[To record credit sales]
Dr Cost of of goods sold $400
Cr Inventory $400
[To record cost of goods sold]
g. Dr Cash $320,000
Cr Sales revenue $320,000
[To record sales ]
h. Dr Cash $3,500
Cr Unearned revenue-deposit $3,500
[To record customer deposits]
i. Dr Accounts payable $17,500
[35,000 x 1/2]
Cr Cash $17,500
[To record cash paid for accounts payable]
j. Dr Cash $400
Cr Accounts receivable $400
[To record collections from customers]
k. Dr Wages expense $245,000
Cr Cash $245,000
[To record payment of wages]
B. Calculation to Determine the ending balance in the Accounts Receivable account at the end of December
Beginning Accounts Receivable 1,000
Add: Sales on account 700
Less: Cash received on account -400
Ending balance in Accounts Receivable $1,300
Therefore the ending balance in the Accounts Receivable account at the end of December will be $1,300
