Question

occur at the resort. a. Borrowed $670,000 from the bank on December 1, signing a note payable, due in six months. b. Purchased a new snowplow for $24,250 cash on December 31. c. Purchased ski supplies for $17,100 on account. d. Incurred $27,200 in routine maintenance expenses for the chairlifts; paid cash. e. Received $71,250 for season passes (beginning in the new year). f. Daily lift passes were sold this month for a total of $93,000 cash. g. Received a $505 deposit on a townhouse to be rented for five days in January. h. Paid half the charges incurred on account in (c) I. Incurred and paid $18,200 in wages to employees for the month of December Required: 1. Prepare accrual basis journal entries for each transaction. 2. Calculate the company's net income based on the transactions listed. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the company's net income based on the transactions in Requirement 1. Net Income

Answer 1

Requirement 2

Net Income=$ 30,500

INCOME STATMENT
Service Revenue		93,000
Less: Expenses
Supplies	17,100
Repair and maintenance Expenses	27,200
salaries and wages expenses	18,200	(62500)
Net income		30,500

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