Question

! Required information [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. a. Borrowed $2,700,000 from the bank on December 1, signing a note payable due in six months. b. Purchased a new snowplow for $93,000 cash on December 31. c. Purchased ski equipment inventory for $32,000 on account to sell in the ski shops. d. Incurred $67,000 in routine repairs expense for the chairlifts; paid cash. e. Sold $374,000 of January through March season passes and received cash. f. Sold a pair of skis from inventory in a ski shop to a customer for $610 on account. (The cost of the skis was $310). (Hint: Record two entries.) g. Sold daily lift passes in December for a total of $278,000 in cash. h. Received a $4,200 deposit on a townhouse to be rented for five days in January. i. Paid half the charges incurred on account in (c). j. Received $470 on account from the customer in (f). k. Paid $255,000 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

Answer 1

No.	Transaction	Journal	Debit	Credit
1	a	Bank or Cash A/c…....Dr.	$2700000
		To Short term note Payble A/c		$2700000
2	b	Equipment A/c ….......Dr.	$93000
		To Cash A/c		$93000
3	c	Inventory A/c …........Dr.	$32000
		To Accounts Payble A/c		$32000
4	d	Repair Expenses A/c ….......Dr.	$67000
		To Cash A/c		$67000
5	e	Cash A/c …....Dr	$374000
		To Unearned Revenue A/c		$374000
6	f (i)	Account Receivable A/c …....Dr	$610
		To Revenue or Sales A/c		$610
7	f(ii)	Cost of Goods Sold A/c…....Dr	$310
		To inventory A/c		$310
8	g	Cash A/c …......Dr.	$278000
		To Sales (Lift Passes) A/c		$278000
9	h	Cash A/c ….......Dr	$4200
		To Rent in Advance A/c		$4200
10	i	Accounts Payable A/c …....Dr [$32000*50%]	$16000
		To Cash A/c [$32000*50%]		$16000
11	j	Cash A/c …......Dr.	$470
		To Account Receivable A/c		$470
12	k	Wages A/c …....Dr	$255000
		To cash A/c		$255000