Required information [The following information applies to the questions displayed below.] Vail Resorts, Incorporated, owns and operates over 30 premier ski resort properties (located in the Colorado Rocky Mountains, the Lake Tahoe area, the upper midwest, the northeast, mid-Atlantic states, and Australia). The company also owns a collection of luxury hotels, resorts, and lodging properties. The company sells lift tickets, ski and snowboard lessons, and ski equipment. The following hypothetical December transactions are typical of those that occur at the resorts. 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 $92,000 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. f. Sold a pair of skis from inventory in a ski shop to a customer for $620 on account. g. The cost of the skis sold in (f) was $280. h. Sold daily lift passes in December for a total of $278,000 in cash. i. Received a $2,200 deposit on a townhouse to be rented for five days in January. j. Paid half the charges incurred on account in (c). k. Received $390 on account from the customer in (^). I. Paid $250,000 in wages to employees for the month of December. Journal entry worksheet 1 2 3 4 5 6 7 8 12 Borrowed $2,900,000 from the bank on December 1, signing a note payable due in six months. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9E: GrillMaster Inc. sells an industry-leading line of outdoor charcoal and gas grills to customers...

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Question

Journal Entry assignment

Key Bank:
1.No Journal entry required

2.Accounts payable

3.Accounts receivable

4.Additional paid-in-capital

5.Advertising expense

6.Cash

7.Commission expense

8.Common stock

9.Consulting expense

10.Cost of goods sold

11.Equipment

12.Fuel expense

13.Games revenue

14.Insurance expense

15.Interest expense

16.Interest revenue

17.Inventory

18.Land

19.Lift revenue

20.Miscellaneous expenses

21.Notes payable (long term)

22.Other assets and intangibles

23.Prepaid expenses

24.Rent expense

25.Rent revenue

26.Repairs expense

27.Retained earnings

28.Service Revenue

29.Short-Term note payable

30.Ski shop sales revenue

31.Supplies

32.Supplies expense

33.Unearned pass revenue

34.Utilities expense

35.Wages expense

36.Wages payable

Required information
[The following information applies to the questions displayed below.]
Vail Resorts, Incorporated, owns and operates over 30 premier ski resort properties (located in the Colorado Rocky
Mountains, the Lake Tahoe area, the upper midwest, the northeast, mid-Atlantic states, and Australia). The company also
owns a collection of luxury hotels, resorts, and lodging properties. The company sells lift tickets, ski and snowboard
lessons, and ski equipment. The following hypothetical December transactions are typical of those that occur at the
resorts.
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 $92,000 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.
f. Sold a pair of skis from inventory in a ski shop to a customer for $620 on account.
g. The cost of the skis sold in (f) was $280.
h. Sold daily lift passes in December for a total of $278,000 in cash.
i. Received a $2,200 deposit on a townhouse to be rented for five days in January.
j. Paid half the charges incurred on account in (c).
k. Received $390 on account from the customer in (^).
I. Paid $250,000 in wages to employees for the month of December.

Journal entry worksheet
1
2
3
4
5
6
7
8
12
Borrowed $2,900,000 from the bank on December 1, signing a note payable
due in six months.
Note: Enter debits before credits.
Transaction
a.
General Journal
Debit
Credit
Record entry
Clear entry
View general journal

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