Given the Following Transactions in the Month of July for Kootenay

question 87

Essay

Given the following transactions in the month of July for Kootenay Outdoor Adventures, prepare journal entries; and, a trial balance and balance sheet as of July 31, 2019.
a)Owner, Bill Thompson invested $35,000 cash and equipment with a value of $67,500 into the business.
b)Purchased supplies on account, $250.
c)Rented office space paying one month's rent, $950.
d)Performed guide service on account, $4,500.
e)Purchased a truck by paying $4,000 cash and signing a promissory note for the balance of $29,800.
f)Performed guiding service and immediately collected $2,900 cash.
g)Owner, Bill Thompson withdrew $900 for personal use.

---

Definitions:

Parent Company

A corporation that owns a controlling share of the stock in another company, making the latter a subsidiary.

Fair Value Method

An accounting approach that measures and reports assets and liabilities on the basis of their estimated or actual fair market price.

Carrying Value

The book value of assets and liabilities on a company's balance sheet, excluding market value fluctuations.

Common Stock

Equity securities representing ownership in a corporation, with voting rights and potential dividends.