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Due Date: July 29, 2017 The purpose of this memorandum is to provide clarity and expectations regarding the bookkeeping
project.
Background
Adrenaline Junkies Rafting (AJR) is a local provider of white-water rafting trips. AJR has been in business
for five years and is a sole proprietorship. The owner, Bill Flip, has asked you to take on the
responsibility of maintaining the business books.
Project Instructions
1.
2.
3.
4. Open T accounts for all of the accounts on the May 31, 20xx trial balance.
Post the June transactions and adjusting entries to the T accounts.
Prepare an adjusted trial balance after you have posted all of the transactions.
Prepare an income statement and balance sheet for the month ended June 30, 20xx. Submission Instructions
Submit the adjusted trial balance, income statement and balance sheet you have prepared on either MS
Excel or MS Word or similar program (i.e. Open Office, Lotus 1-2-3, etc.) Submit your file through
Moodle at the appropriate link.
You may include your T accounts but this is not required. Please make sure that your adjusted trial
balance and balance sheet are in balance. Also, make sure that all statements and work papers
contain appropriate titles. Adrenaline Junkies Rafting (AJR)
Transaction Log
June 20xx
Date
1?Jun
1?Jun
3?Jun
4?Jun
6?Jun
6?Jun
7?Jun
9?Jun
10?Jun
10?Jun
11?Jun 12?Jun
12?Jun
14?Jun
15?Jun
15?Jun
15?Jun
17?Jun
18?Jun
19?Jun
19?Jun
19?Jun
19?Jun
22?Jun
25?Jun
30?Jun
30?Jun
30?Jun Description
Bill Flip contributes an additional $5,000 to the business.
Customers book a float on the Deschutes and pay for services, $350.
Customers book a 2?day float on the North Umpqua and pay for services, $1,100.
AJR buys lunch supplies spending $105
AJR buys a new 14 ft. 3 in. whitewater raft for $3,100 plus $75 shipping, due and payable to the retailer by August 1, 20xx.
AJR spends $275 for vehicle maintenance.
Customers book a float on the McKenzie and pay $95.
AJR receives payment of $350, the remaining balance from a trip taken in May.
AJR pays $325 to guides (assume they are employees but ignore payroll taxes.)
AJR spends $75 to re?wire a trailer with damaged lights.
AJR takes customers for a float for a payment of $325 on the McKenzie and the trip was booked by a travel agent who will be paid a 10% commission on the 5th of the following month.
AJR takes a 50?person group for a float on the McKenzie and is paid $2,500 but has to rent two extra boats at $75 each.
AJR purchases box lunches for the 50?person group at $5 per customer and lunches for six guides, also at $5 each.
AJR had new brochures printed and paid $195.
Bill Flip draws $250 from the business for his personal use.
AJR pays the transportation fuel bill for the first half of the month of $295.
One of the guides fails to plug in trailer wires and they are destroyed driving back to the yard. The cost to repair the damage is $75.
AJR sends one boat and one guide to the Deschutes to haul gear for a fishing guide and will pay her $300 next month.
Customers pay $625 for a McKenzie trip.
Customers pay $1,250 for a 2?day North Umpqua trip.
AJR pays $165 for food for the 2?day North Umpqua trip.
In an effort to save money, some of the guides overload a trailer and break an axle. AJR pays $215 to repair the axle.
AJR buys logo shirts for the guides at a cost of $250. This is discourage them from wearing inappropriate shirts and tops.
Customers pay AJR $235 for a half?day McKenzie float.
AJR pays $625 to guides (assume they are employees but ignore payroll taxes.)
A nonprofit groupgoes on a McKenzie float but, for budgetary reasons, will pay AJR $435 by the 15th of July.
AJR pays the transportation fuel bill for the second half of the month of $310.
Bill Flip draws $325 from the business for his personal use. Adrenaline Junkies Rafting (AJR)
Adjusting Entries
June 20xx
30?Jun 30?Jun 30?Jun
30?Jun AJR has an arrangement with a local shutle driver to move vehicles while boats are in the river. The charge is $25 per vehicle moved and is due by the 10th of the following month. A count of the shuttles show 11 shuttles for June (i.e. 11 vehicles moved.)
Monthly depreciation amounts are:
16 ft. CataRaft ? $75
15 ft. 6 in. Raft ? $85
Trailer ? $25
Van ? $125
The new 14 ft. 3 in. raft has an estimated salvage of $775 and a 48?month useful life.
AJR owes a 3% special use permit fee to the U.S. Forest Service for all revenue generated on the North Umpqua and Deschutes. Adrenaline Junkies Rafting (AJR)
Trial Balance
May 31, 20xx Cash
Accounts Receivable
16 ft. CataRaft
Accumulated Depreciation ? 16 ft. CataRaft
15 ft. 6 in. Raft
Accumulated Depreciation ? 15 ft. 6 in. Raft
Trailer
Accumulated Depreciation ? Trailer
Van
Accumulated Depreciation ? Van
Accounts Payable
U.S. Forest Service Payable
Shuttles Payable
Commissions Payable
Owner’s Equity ? Bill Flip
Owner’s Drawing ? Bill Flip
McKenzie River Revenue
Deschutes River Revenue
North Umpqua River Revenue
River Lunch Expense
River Trip Expense
Office Supplies Expense
Maintenance & Repairs Expense
Guide Pay Expense
Rental Expense
Commissions Expense
Marketing Expense
Fuel Expense
Legal & Professional Expense Debit
$ 4,100
$ 620
$ 2,700 Credit $ 1,200
$ 4,080
$ 2,040
$ 1,000
$ 325
$ 7,500
$ 3,500
$ 405
$ 530
$ ?
$ ?
$ 12,000 $ 20,000 $ 20,000
