Business, 03.03.2020 05:02 emurray

Vail Resorts, Inc., owns and operates five premier year-round ski resort properties (Vail Mountain, Beaver Creek Resort, Breckenridge Mountain, and Keystone Resort, all located in the Colorado Rocky Mountains, and Heavenly Valley Mountain Resort, located in the Lake Tahoe area of California/Nevada). The company also owns a collection of luxury hotels, resorts, and lodging properties. The company sells lift tickets, ski lessons, and ski equipment. The following hypothetical December transactions are typical of those that occur at the resorts.

a. Borrowed $2,500,000 from the bank on December 1, signing a note payable due in 6 months.
b. Purchased a new snowplow for $90,000 cash on December 31.
c. Purchased ski equipment inventory for $40,000 on account to sell in the ski shops.
d. Incurred $62,000 in routine maintenance expenses for the chairlifts; paid cash.
e. Sold $372,000 of January through March season passes and received cash.
f. Sold a pair of skis from a ski shop to a customer for $750 on account. (The cost of the skis was $450.)
g. Sold daily lift passes in December for a total of $270,000 in cash.
h. Received a $3,200 deposit on a townhouse to be rented for five days in January.
i. Paid half the charges incurred on account in (c).
j. Received $400 on account from the customer in (f).
k. Paid $258,000 in wages to employees for the month of December.

Required:

1. Prepare journal entries for each transaction. (Remember to check that debits equal credits and that the accounting equation is in balance after each transaction.)

2. Assume that ending balance in the Accounts Receivable account at the end of December based on transaction (A) through (K). Show your work in T_Account format.

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Answer from: kate5582

Account receivable credit balance is 67100 means customer has overpaid and company has liability to settle it.

Explanation:

a.) Dr Bank 2500,000

Cr Notes payable 2500,000

b.) Dr Snowplow 90000

Cr Cash 90000

c.) Dr Inventory 40000

Cr Accounts payable 40000

d.) Dr Repair and maintenance expense 62000

Cr Cash 62000

e.)1. Dr Account receivable 372000

Cr Sales revenue 372000

2. Dr Cash 372000

Cr Account receivable 372000

f.) Dr Account receivable ( 750*450) 337500

Cr Sales revenue 337500

g.) Dr Cash 270000

Cr Account receivable 270000

h.) Dr Cash 3200

Cr Advance rent 3200

I.) Dr Account payable 20000

Cr Cash (40000/2) 20000

j.) Dr Cash 400

Cr Account receivable 400.

k.) Dr Salary expense 258000

Cr Cash 258000

2.) ACCOUNT RECEIVABLE

e.1)-372000 --- e.2) 372000

f.- 337500 g. 270000

j. 400

Balance 67100

709500 709500

Answer from: Quest

answer; ///the correct answer is (organizational effectiveness);

Answer from: Quest

Hello! i️ believe a.) is the correct answer. : )

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Vail Resorts, Inc., owns and operates five premier year-round ski resort properties (Vail Mountain,...

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