Answer:
A.
a. Dr Cash $2,300,000
Cr Notes payable $2,300,000
b. Dr Equipment $98,000
Cr Cash $98,000
c.Dr Inventory $35,000
Cr Accounts payable $35,000
D. Dr Repair expense $62,000
Cr Cash $62,000
e. Dr Cash $390,000
Cr Unearned revenue $390,000
f. Dr Accounts receivable $700
Cr Sales revenue $700
Dr Cost of of goods sold $400
Cr Inventory $400
g. Dr Cash $320,000
Cr Sales revenue $320,000
h. Dr Cash $3,500
Cr Unearned revenue-deposit $3,500
i. Dr Accounts payable $17,500
Cr Cash $17,500
j. Dr Cash $400
Cr Accounts receivable $400
k. Dr Wages expense $245,000
Cr Cash $245,000
B. $1,300
Explanation:
A. Preparation of Journal entries
a. Dr Cash $2,300,000
Cr Notes payable $2,300,000
[To acknowledge cash borrowed from the bank]
b. Dr Equipment $98,000
Cr Cash $98,000
[To record acquisition of a snowplow]
c.Dr Inventory $35,000
Cr Accounts payable $35,000
[To log purchase of inventory on credit]
D. Dr Repair expense $62,000
Cr Cash $62,000
[For payment of repair expenses]
e. Dr Cash $390,000
Cr Unearned revenue $390,000
[For sale of seasonal passes]
f. Dr Accounts receivable $700
Cr Sales revenue $700
[To record sales on credit]
Dr Cost of goods sold $400
Cr Inventory $400
[To record associated costs]
g. Dr Cash $320,000
Cr Sales revenue $320,000
[To document sales ]
h. Dr Cash $3,500
Cr Unearned revenue-deposit $3,500
[To log customer deposits]
i. Dr Accounts payable $17,500
[35,000 x 1/2]
Cr Cash $17,500
[For recording cash payments toward accounts payable]
j. Dr Cash $400
Cr Accounts receivable $400
[To log customer payments]
k. Dr Wages expense $245,000
Cr Cash $245,000
[To acknowledge wage payments]
B. To determine the ending balance in the Accounts Receivable account as of the end of December
Beginning Accounts Receivable 1,000
Add: Sales on account 700
Less: Cash received on account -400
Ending balance in Accounts Receivable $1,300
Consequently, the final balance in the Accounts Receivable by the end of December will amount to $1,300
