Question

Mason Yachts, a boat manufacturing company, begins business on 1/1/2017. For the transactions below, please update the t-accounts and the trial balance.

On January 1, 2017, Ted Mason invest $200,000 in exchange of 1,000 shares of $1 par Common Stock.

On January 1, 2017, Mason Yachts buys $6,000 worth of office supplies with cash.

On January 1, 2017, Mason Yachts pre-Pays the following expenses for the next 12 months: Rent Expense $6,000 and Insurance Expense $3,600

On January 1, 2017 Mason Yachts buys $36,000 worth of machines that will be used in modifying boats that will be sold. Mason noted that these machines will have useful life of 6 years and no salvage value at the end of the 6 years. Mason will use the straight-line depreciation method in depreciating the asset. Mason bought these machines with cash.

On January 1, 2017 Mason Yachts hires three employees: John Mason, Office Manager, Frank Mason, Repairs Manager, and McCoy Mason, Sales Manager. Each of the three employees will have a monthly salary of $8,000, which will be paid on the 5th day of the next month.

On January 2nd, Ozark Boats pre-pays Mason Yachts $40,000 to perform repair services on 5 boats. For each boat repaired, Mason Yacht will receive $8,000 in revenue.

On January 2nd, John Mason purchased 5 Boats for $10,000 each at the boat action. These boats are ready re-sale and were put into inventory on this date. Ted purchased these boats on account and will be paid in 90 days.

On January 15th, Mason Yachts sold 2 Boats for $35,000 each to a customer. The customer will pay in cash for these boats in 30 days. (Hint: Remember there are two entries with a sale of goods)

On January 30th, Mason Yachts announced that is has declared and paid a dividend of $1 to all shares of common stock.

Check Fi Debit Beginning Ealance Beginning Dalance Legiuning Balaice JE#1 Ending Balance 200,000 Ending Balace Ending Balance Beginning Balance Beginning Balance Beginning Balace JE#8 Ending Balance Ending Balaace Ending Balance ful Ac Debat Credit Debit Cradit Debit Crecdit Beginning Balance Beginuiug Balance Begiuning Balance Ending Balance Enling Balace Ending Balance Debit Beginning Balance Begining Balane Beginning Balae 1,000 Ending Halauce Ending Balance 1,000 Euding Balance Credit Debit Peginning Balance Beginaing Balanoe Beginning Lalance JE 1 199,000 Ending Balace Ending Balance D Eding Balace Debit Beginning Balanee Beginng Balane Begining Balane Lnding Ialauce Ending Balance Euding Balance Beginng Balance Beginniug Balance Begiuning Balance Ending Balance Endling Balace Ending Balanoe Debit Credi Beginning Bslance Begiuning Balauce Ending Balance Ending Balanoe Credit Bepinning Balnnoe Ending Balance

Answer 1

Answer

Journal entries for the transactions: