Question

n decided to open a hotel in her hometown. (1) Prepare journal entries to record the following (2) Use a T-account to determine cash balance at June 30. Anderson uses the following accounts Room Rental Revenue and Event Revenue. All expenses for special events are recorded as Event Expense. June 1 June 2 June 3 June 5 June 10 June 14 June 15 June 16 June 17 Anderson invested $400,000 into the business in exchange for common stock. Anderson purchased an existing building and land for the hotel costing $900,000. The purchase appraisal allocated $100,000 for land and $800,000 to the building. Anderson paid $250,000 and financed the remainder with a mortgage note payable, Paid $6,000 for a six-month insurance policy on the hotel. Purchased linens and other supplies costing $4,000 on account. Received advance payments of $12,000 from customers that will be staying at the hotel in July. Payments will be refunded if the customer cancels within 7 days of their scheduled arrival time. Received $13,000 from customers currently staying at the hotel in June. Paid the staff $2,000 for the first semi-monthly payroll. Paid $500 for general maintenance and repairs expense. Received $10,000 payment for a wedding reception held over the weekend. Paid the caterer $2,500 for providing catering services for the wedding reception. Paid Fixture Rentals $1,000 for table and chair rental for the wedding. Paid the florist $2,000 for flowers for the wedding. Paid for the linens and supplies purchased on June 5. Received an additional $5,000 from current hotel customers for June. Paid the staff $2,000 for the second semi-monthly payroll. Paid $4,000 in dividends to sole stockholder. June 18 June 18 June 19 June 24 June 25 June 30 June 30

Answer 1

Journal entries
Date	Particulars	Debit	Credit
Jun-01	Cash	$        4,00,000
	Capital		$        4,00,000
	(Capital brought)
Jun-02	Land	$        1,00,000
	Building	$        8,00,000
	Cash		$        2,50,000
	Notes payable		$        6,50,000
	(Purchase of land and building partly for cash balance using mortgage)
Jun-03	Prepaid Insurance	$              6,000
	Cash		$              6,000
	(6 months insurance paid)
Jun-05	Linen and Other supplies stock	$              4,000
	Accoutns payable		$              4,000
	(Purchase of linen and other supplies)
Jun-10	Cash	$            12,000
	Unearned income		$            12,000
	(Advance received from customer towards July stay)
Jun-14	Cash	$            13,000
	Room rental revenue		$            13,000
	(Cash received from customers towards room rent)
Jun-15	Salaries expense	$              2,000
	Cash		$              2,000
	(Paid to staff towards first semi-month payroll)
Jun-16	General maintenance and repair expense	$                  500
	Cash		$                  500
	(Paid towards general maintenance and repair expense)
Jun-17	Cash	$            10,000
	Event revenue		$            10,000
	(Received towards wedding event)
Jun-18	Event expense	$              2,500
	Cash		$              2,500
	(Paid to caterer for providing catering services for the wedding reception)
Jun-18	Event expense	$              1,000
	Cash		$              1,000
	(Paid towards rental charges of chairs and tables for wedding)
Jun-19	Event expense	$              2,000
	Cash		$              2,000
	(Paid to florist for flowers for wedding)
Jun-24	Accounts payable	$              4,000
	Cash		$              4,000
	(Paid to vendor for linen and supplies purchased)
Jun-25	Cash	$              5,000
	Room rental revenue		$              5,000
	(Cash received from customers towards room rent)
Jun-30	Salaries expense	$              2,000
	Cash		$              2,000
	(Paid to staff towards second semi-month payroll)
Jun-30	Dividend	$              4,000
	Cash		$ 4,000
	(Paid dividend)

Cash Account

Cash
Beg.bal.	-
Cash	4,00,000		Jun.01
Land		1,00,000	Jun.02
Building		1,50,000	Jun.02
Prepaid Insurance		6,000	Jun.03
Unearned income	12,000		Jun.10
Room rental revenue	13,000		Jun.14
Salaries expense		2,000	Jun.15
General maintenance and repair expense		500	Jun.16
Event revenue	10,000		Jun.17
Event expense		2,500	Jun.18
Event expense		1,000	Jun.18
Event expense		2,000	Jun.19
Accounts payable		4,000	Jun.24
Room rental revenue	5,000		Jun.25
Salaries expense		2,000	Jun.30
Dividend		4,000	Jun.30
End. Bal.	1,66,000