Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes cou
Posted: Sun Jun 05, 2022 9:09 pm
Tony and Suzie have purchased land for a new camp. Now they need
money to build the cabins, dining facility, a ropes course, and an
outdoor swimming pool. Tony and Suzie first checked with Summit
Bank to see if they could borrow an additional $1 million, but
unfortunately the bank turned them down as too risky. Undeterred,
they promoted their idea to close friends they had made through the
outdoor clinics and TEAM events. They decided to go ahead and sell
shares of stock in the company to raise the additional funds for
the camp.
Great Adventures has authorized $1 par value common stock. When
the company began on July 1, 2021, Tony and Suzie each purchased
10,000 shares (20,000 shares total) of $1 par value common stock at
$1 per share. The following transactions affect stockholders’
equity during the remainder of 2022:
31
Pay $835,000 for construction of new cabins and other
facilities. The entire expenditure is recorded in the Buildings
account.
Closing entry for the revenue accounts.
Closing entry for the expense and loss accounts.
Closing entry for the dividend account.
Please share the General Journal, Income Statement and Balance
Sheet.
money to build the cabins, dining facility, a ropes course, and an
outdoor swimming pool. Tony and Suzie first checked with Summit
Bank to see if they could borrow an additional $1 million, but
unfortunately the bank turned them down as too risky. Undeterred,
they promoted their idea to close friends they had made through the
outdoor clinics and TEAM events. They decided to go ahead and sell
shares of stock in the company to raise the additional funds for
the camp.
Great Adventures has authorized $1 par value common stock. When
the company began on July 1, 2021, Tony and Suzie each purchased
10,000 shares (20,000 shares total) of $1 par value common stock at
$1 per share. The following transactions affect stockholders’
equity during the remainder of 2022:
31
Pay $835,000 for construction of new cabins and other
facilities. The entire expenditure is recorded in the Buildings
account.
Closing entry for the revenue accounts.
Closing entry for the expense and loss accounts.
Closing entry for the dividend account.
Please share the General Journal, Income Statement and Balance
Sheet.