Jason Hope Decided to Open a Hotel in His Hometown

question 175

Essay

Jason Hope decided to open a hotel in his hometown. Prepare journal entries to record the following transactions. Hope uses the accounts Room Rental Revenue and Event Revenue. All expenses for special events are recorded as Event Expense. (Omit explanations.)


$\begin{array} {| l | l |} \hline \text { June 1 } & \text { Hope invested } \$ 400,000 \text { into the business } \\\hline \text { June 2 } & \begin{array} { l } \text { Hope purchased an existing building and land for the hotel costing } \$ 900,000 . \\\text { The purchase appraisal allocated } \$ 100,000 \text { for land and } \$ 800,000 \text { to the } \\\text { building. Hope paid } \$ 250,000 \text { and financed the remainder with a mortgage } \\\text { note payable. }\end{array} \\\hline \text { June 3 } & \text { Paid } \$ 6,000 \text { for a six month insurance policy on the hotel. } \\\hline \text { June 5 } & \text { Purchased linens and other supplies costing } \$ 4,000 \text { on account. } \\\hline \text { June 10 } & \begin{array} { l } \text { Received advance payments of } \$ 12,000 \text { from customers that will be staying a } \\\text { the hotel in July. Payments will be refunded if the customer cancels within 7 } \\\text { days of their scheduled arrival time. }\end{array} \\\hline\end{array}$
$$\begin{array} { | l | l | } \hline \text { June } 14 & \begin{array} { l } \text { Received cash payments of \$13,000 from current customers staying at the } \\\text { hotel in June. }\end{array} \\\hline \text { June 15 } & \text { Paid the staff \$2,000 for the first semi-monthly payroll. } \\\hline \text { June 16 } & \text { Paid \$500 for general maintenance and repairs expense. } \\\hline \text { June 17 } & \text { Received \$10,000 payment for a wedding reception during the weekend } \\\hline \text { June 18 } & \begin{array} { l } \text { Paid the caterer \$2,500 for providing catering services for the wedding } \\\text { reception. }\end{array} \\\hline \text { June 18 } & \text { Paid Fixture Rentals \$1,000 for table and chair rental. } \\\hline \text { June 19 } & \text { Paid the florist \$2,000 for flowers for the event. } \\\hline \text { June 24 } & \text { Paid for the linens and supplies purchased on June 5. } \\\hline \text { June 25 } & \text { Recorded an additional \$5,000 from current hotel customers for June. } \\\hline \text { June 30 } & \text { Paid the staff \$2,000 for the second semi-monthy payroll. } \\\hline \text { June 30 } & \text { The owner withdrew \$4,000 for persongl use. } \\\hline\end{array}$$

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Definitions:

Insulin

A substance secreted by the pancreas that controls the levels of sugar in the blood by enabling glucose to be absorbed into body tissues.

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone" because its levels increase in response to stress.

Estrogen

A group of steroid hormones that play a significant role in the development and regulation of the female reproductive system and secondary sexual characteristics.

Testosterone

Testosterone is a steroid hormone primarily produced in the testes of males and the ovaries of females, playing a key role in the development of male reproductive tissues and secondary sexual characteristics.