Greek Peak is a ski resort in upstate New York The company s

Greek Peak is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and rents townhouses to vacationing skiers. The following hypothetical December transactions are typical of those that occur at the resort. a. Borrowed $685,000 from the bank on December 1, signing a note payable, due in six months b Purchased a new snowplow for $29,750 cash on December 31 c. Purchased ski supplies for $19,200 on account. d. Incurred $29,400 in routine maintenance expenses for the chairlifts; paid cash. e. Received $84,000 for season passes (beginning in the new year) f. Daily lift passes were sold this month for a total of $95,800 caslh g Received a $765 deposit on a townhouse to be rented for five days in January. h. Paid half the charges incurred on account in (c) i. Paid $18,500 in wages to employees for the month of December. Required 1. Prepare accrual basis 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 Borrowed $685,000 from the bank on December 1, signing a note payable, due in six months. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 2. Calculate the company\'s preliminary net income Preliminary Net Income

Solution

Debit Credit a Cash 685000 Note Payable 685000 b Equipment -Snowplow 29750 Cash 29750 c Supplies 19200 Account Payable 19200 d Maintenance Expense 29400 Cash 29400 e Cash 84000 Unearned Revenue 84000 f Cash 95800 Service revenue 95800 g Cash 765 Unearned Revenue 765 h Account Payable 9600 Cash 9600 i Salaries and Wages 18500 Cash 18500 Preliminary Net Income Service revenue 95800 Maintenance Expense 29400 Salaries and Wages 18500 47900 Net Income 47900