Question

Jason Hope opened a hotel. Prepare journal entries and post to the appropriate T-accounts to record the following transactions. Compute the balance as of June 30 for each T-account Hope uses the accounts Room Rental Revenue and Event Revenue. All expenses for special events are recorded as Event Expense.

June 1 Hope invested $400,000 cash into the business

June 2 Hope purchased a hotel building for $800,000 and land for $100,000. Hope paid $250,000 in cash and signed note payable for $650,000.

June 3 Paid $6,000 for a six month insurance policy on the hotel.

June 5 Purchased supplies costing $4,000 on account.

June 10 Received advance payments of $12,000 from customers that will be staying at the hotel in July. Payments will be refunded if the customer cancels within 7 days of their scheduled arrival time.

June 14: Received cash payments of $13,000 from current customers staying at the hotel in June.

June 15 Paid $2,000 cash for staff salaries. June 16 Paid $500 for maintenance expense.

June 17: Received $10,000 payment for a wedding reception hosted that day.

June 18 Paid $2,500 for catering expenses.

June 18 Paid event expenses of $1,000 for table and chair rentals.

June 19 Paid event expenses of $2,000 for flowers.

June 24 Paid for the supplies purchased on June 5.

June 25 Recorded an additional $5,000 cash received from current hotel customers for June.

June 30 Paid $2,000 cash for staff salaries.

June 30 The owner withdrew $4,000 for personal use.

Answer 1