During the month of May 20--, The General’s Favorite Fishing Hole engaged in the following transactions. These transactions required an expansion of the chart of accounts as shown below.
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Adjustment information at the end of May is provided below.
(a) Total vending machine sales were $2,300 for the month of May.
(b) Straight-line depreciation is used for the 10 boats purchased on April 2 for $60,000. The useful life for these assets is five years and there is no salvage value. A full month’s depreciation was taken in April on these boats. Straightline depreciation is also used for the two boats purchased in May. Make one adjusting entry for all depreciation on the boats.
(c) Straight-line depreciation is used to depreciate the surround sound system.
(d) Straight-line depreciation is used to depreciate the big screen TV.
(e) Straight-line depreciation is used for the building purchased in May.
(f) On April 2, Night paid $9,000 for insurance during the six-month camping season. May’s portion of this premium was used up during this month.
(g) Night received his May issues of Fishing Illustrated, Fishing Unlimited, and Fish Master.
(h) Office supplies remaining on hand, $150.
(i) Food supplies remaining on hand, $5,925.
(j) Wages earned, but not yet paid, at the end of May, $6,000.
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1. Enter the transactions in a general journal. Enter transactions from May 1–4 on page 5, May 5–28 on page 6, and the remaining entries on page 7. To save time and space, don’t enter descriptions for the journal entries.
2. Post the entries to the general ledger. (If you are not using the working papers that accompany this text, you will need to enter the account titles, account numbers, and balances from April 30 in the general ledger accounts.)