Week-1 Basic Journal EntriesMason Yachts, a boat manufacturing company, begins business on 1/1/2015. Mason specializes in selling and repairingyachts. A listing of all of Mason trial balance accounts can be found in “trial balance” tab below. For the transactionsbelow, please record the necessary journal entries in the “Journal Entries” tab and update the balances in the trialbalance. I have provided a “T-Account” tab for each individual trial balance account to track the changes during theperiod.Week-2 Adjusting Journal Entries and Income StatementAt the end of the month, Mason needs to make the following adjusting journal entries. Please record theseadjusting journal entries in the “journal entries”, “T-Accounts”, and “Trial Balance” tabs and prepare a single-stepand multiple step income statement in the “Income Statement” tab.Transaction #1On January 1, 2015, Ted Mason invest $200,000 in exchange of 1,000 shares of $1 par CommonStock.Transaction #10 : One month of expenses has been incurred for rent and insurance expenses.Transaction #2On January 1, 2015, Mason Yachts buys $6,000 worth of office supplies with cash.Transaction #11: John, Frank, and McCoy Mason worked for a full-month as salary employees. They will be paid onFebruary 5th.Transaction #3On January 1, 2015, Mason Yachts pre-Pays the following expenses for the next 12 months: RentExpense $6,000 and Insurance Expense $3,600Transaction #12: At then end of the month, John Mason does an inventory of the supplies room and notes that$2,500 worth of supplies is still remaining in the stock room.Transaction #4On January 1, 2015 Mason Yachts buys $36,000 worth of machines that will be used in modifyingboats that will be sold. Mason noted that these machines will have useful life of 6 years and nosalvage value at the end of the 6 years. Mason will use the straight-line depreciation method indepreciating the asset. Mason bought these machines with cash.Transaction #13: One month of depreciation has been incurred as of Janary 31st on the machines purchased.Record the applicable entry.Transaction #5On January 1, 2015 Mason Yachts hires three employees: John Mason, Office Manager, Frank Mason,Repairs Manager, and McCoy Mason, Sales Manager. Each of the three employees will have amonthly salary of $8,000, which will be paid on the 5th day of the next month.Transaction #6On January 2nd, Ozark Boats pre-pays Mason Yachts $40,000 to perform repair services on 5 boats.For each boat repaired, Mason Yacht will receive $8,000 in revenue.Transaction #15: McCoy Mason has noted that the customer that purchased the two boats on account is infinancial trouble and collectiablity may or may not occur. Based on discussions with the customer, Mason expectsto receive 90% of the puchase price of the boats on account. As such, Mason has decided to reserve for the 10% inan allowance account and will not completely write-off the accounts receivable.Transaction #7On January 2nd, John Mason purchased 5 Boats for $10,000 each at the boat action. These boats areready re-sale and were put into inventory on this date. Ted purchased these boats on account andwill be paid in 90 days.Transaction #16: After review of the bank statement at month-end, you note that $100 of interest income wasearned and wired into cash account at First Hawaiian Bank for interest related to our account balance for themonth of January.Transaction #14: As of January 31st, Mason Yachts has completed repair services on 4 of the 5 Ozark Boats. Basedon the terms of the agreement Mason may record revenue.Prepare Single Step and Multiple Step Income Statements on the “Income Statement” tab for the month of January.Transaction #8On January 15th, Mason Yachts sold 2 Boats for $35,000 each to a customer. The customer will payin cash for these boats in 30 days. (Hint: Remember there are two entries with a sale of goods)Transaction #9On January 30th, Mason Yachts announcee that is has declared and paid a dividend of $1 to allshares of common stock.AssetsAccount # Account Description1000 Cash1100 Accounts Receivable1150 Allowance for Doubtful Accounts1200 Inventory1300 Pre-Paid Expense1400 Supplies1500 Machines1550 Accumulated Depreciation MachineJournal Entry #Account #123456Liabilities and EquityAccount # Account Description2000 Accounts Payable2100 Unearned Service Revenue2200 Wages and Salaries Payable3000 Common Stock3050 Additional Paid In Capital3100 Dividends3200 Retained EarningsAccount Description1000 Cash3000 Common Stock3050 Additional Paid In CapitalDebitCredit200,0001,000199,0001400 Supplies1000 Cash6,0001300 Pre-Paid Expense1000 Cash9,6001500 Machines1000 Cash6,0009,60036,00036,000No EntryNo Entry89101112131415161000 Cash2100 Unearned Service Revenue40,0001200 Inventory2000 Accounts Payable50,0001100 Accounts Receivable4000 Revenue-Yacht Sales70,0005000 Cost of Goods Sold1200 Inventory7Income StatementAccount # Account Description4000 Revenue-Yacht Sales4100 Revenue-Repair Services5000 Cost of Goods Sold6000 Wages and Salaries Expense6100 Rent Expense6200 Supplies Expense6300 Insurance Expense6400 Depreciation Expense6500 Interest Income6600 Bad Debt Expense20,0003100 Dividends1000 Cash40,00050,00070,00020,0001,0001,000Beginning BalanceJE #1JE #2JE#3JE #4JE #6JE #9Assets339,0001000-CashDebit200,000Liabilities and EquityIncome Statement289,00050,0004000-Revenue-Yacht SalesDebitCredit2000-Accounts PayableDebitCreditCreditBeginning Balance50,000Beginning BalanceJE #870,00050,000JE #7Ending Balance70,0006,0009,60036,00040,0001,000Ending Balance187,400Ending Balance1100-Accounts ReceivableDebitCredit2100-Unearned Service RevenueDebitCredit4100-Revenue- Repair ServicesDebitCreditBeginning BalanceJE #870,000Beginning BalanceJE #640,000Beginning BalanceEnding Balance70,000Ending Balance40,0001150-Allowance for Doubtful AccountsDebitCredit2200-Wages and Salaries PayableDebitCreditBeginning BalanceEnding Balance-Beginning BalanceJE #8Ending Balance-1200-Inventory50,000Ending Balance20,000Ending Balance20,0003000-Common StockDebitCreditCreditBeginning BalanceJE #7JE# 830,0005000-Cost of Goods SoldDebitCreditBeginning BalanceDebitEnding Balance6000-Wages and Salaries ExpenseDebitCreditBeginning BalanceBeginning BalanceJE #11,00020,000Ending Balance1,0001300-Pre-Paid ExpensesDebitCreditBeginning BalanceJE #33050-Additional Paid In CapitalDebitCredit9,600Ending Balance9,600Beginning BalanceJE #1199,000Ending Balance199,0001400-SuppliesCredit6100-Rent ExpenseDebitCreditBeginning BalanceDebitEnding BalanceDebitEnding Balance3100-DividendsCreditBeginning BalanceJE #26,000Beginning BalanceJE #96,000Ending Balance6200-Supplies ExpenseDebitCredit1,000Ending Balance-1,0001500-MachinesDebit36,0006300-Insurance ExpenseDebitCredit36,000Ending BalanceEnding Balance3200-Retained EarningsDebitCreditCreditBeginning BalanceJE #4Beginning BalanceBeginning BalanceEnding BalanceBeginning Balance-Ending Balance1550-Accumulated Depreciation MachinesDebitCredit6400-Depreciation ExpenseDebitCreditBeginning BalanceEnding Balance-Beginning Balance-Ending Balance6500-Interest IncomeDebitCreditBeginning BalanceEnding Balance6600-Bad Debt ExpenseDebitCreditBeginning BalanceEnding Balance-Check Figure-Account # Account Description1000 Cash1100 Accounts Receivable1150 Allowance for Doubtful Accounts1200 Inventory1300 Pre-Paid Expense1400 Supplies1500 Machines1550 Accumulated Depreciation Machine2000 Accounts Payable2100 Unearned Service Revenue2200 Wages and Salaries Payable3000 Common Stock3050 Additional Paid In Capital3100 Dividends3200 Retained Earnings4000 Revenue-Yacht Sales4100 Revenue-Repair Services5000 Cost of Goods Sold6000 Wages and Salaries Expense6100 Rent Expense6200 Supplies Expense6300 Insurance Expense6400 Depreciation Expense6500 Interest Income6600 Bad Debt ExpenseBeginning Balance-Week 1Journal EntriesDebitCredit187,40070,00030,0009,6006,00036,00050,00040,0001,000199,0001,00070,00020,000Balance187,40070,00030,0009,6006,00036,000(50,000)(40,000)(1,000)(199,000)1,000(70,000)20,000-Week 2Adjusting Journal EntriesDebitCreditBalance187,40070,00030,0009,6006,00036,000(50,000)(40,000)(1,000)(199,000)1,000(70,000)20,000-Assets=Liabilities (+)Equity (+)IncomeStatementMason Yacht CompanySingle Step Income Statement1/31/2015Mason Yacht CompanyMultiple Step Income Statement1/31/2015

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