Question

The following information applies to the questions displayed below.] Vail Resorts, Inc., owns and operates 11 premier year-round ski resort properties (located in the Colorado Rocky Mountains, the Lake Tahoe area, the upper midwest, Vermont, and Australia). 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. 11:55 a. Borrowed $2,900,000 from the bank on December 1, signing a note payable due in six months. b. Purchased a new snowplow for $81,000 cash on December 31. c. Purchased ski equipment inventory for $31,000 on account to sell in the ski shops. d. Incurred $53,000 in routine repairs expense for the chairlifts: paid cash. e. Sold $375,000 of January through March season passes and received cash. 1. Sold a pair of skis from inventory in a ski shop to a customer for $490 on account. (The cost of the skis was $340). (Hint: Record two entries.) g. Sold daily lift passes in December for a total of $271,000 in cash. h. Received a $2,300 deposit on a townhouse to be rented for five days in January i. Paid half the charges incurred on account in (c) j. Received $460 on account from the customer in in. k. Paid $254,000 in wages to employees for the month of December. Required: 1. Prepare journal entries for each transaction (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Borrowed $2,900,000 from the bank on December 1, signing a note payable due in six months.

Answer 1

Answer:

	Account title and Explanation	Debit	Credit
a	Cash	$2,900,000
	Notes payable		$2,900,000
	[To record cash borrowed from bank]
b	Equipment	$81,000
	Cash		$81,000
	[To record purchase of snowplow]
c	Inventory	$31,000
	Accounts payable		$31,000
	[To record purchase of inventory on account]
d	Repair expense	$53,000
	Cash		$53,000
	[To record payment of repair expense]
e	Cash	$375,000
	Unearned revenue		$375,000
	[To record sale of season passes]
f	Accounts receivable	$490
	Sales revenue		$490
	[To record credit sales]
	Cost of of goods sold	$340
	Inventory		$340
	[To record cost of goods sold]
g	Cash	$271,000
	Sales revenue		$271,000
	[To record sales ]
h	Cash	$2,300
	Unearned revenue-deposit		$2,300
	[To record customer deposits]
i	Accounts payable [31,000 x 1/2]	$15,500
	Cash		$15,500
	[To record cash paid for accounts payable]
j	Cash	$460
	Accounts receivable		$460
	[To record collections from customers]
k	Wages expense	$254,000
	Cash		$254,000
	[To record payment of wages]