Question: mason yachts a boat manufacturing company begins business on 112017...
Mason Yachts, a boat manufacturing company, begins business on 1/1/2017. For the transactions below, please update the t-accounts and the trial balance.
On January 1, 2017, Ted Mason invest $200,000 in exchange of 1,000 shares of $1 par Common Stock.
On January 1, 2017, Mason Yachts buys $6,000 worth of office supplies with cash.
On January 1, 2017, Mason Yachts pre-Pays the following expenses for the next 12 months: Rent Expense $6,000 and Insurance Expense $3,600
On January 1, 2017 Mason Yachts buys $36,000 worth of machines that will be used in modifying boats that will be sold. Mason noted that these machines will have useful life of 6 years and no salvage value at the end of the 6 years. Mason will use the straight-line depreciation method in depreciating the asset. Mason bought these machines with cash.
On January 1, 2017 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 a monthly salary of $8,000, which will be paid on the 5th day of the next month.
On 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.
On January 2nd, John Mason purchased 5 Boats for $10,000 each at the boat action. These boats are ready re-sale and were put into inventory on this date. Ted purchased these boats on account and will be paid in 90 days.
On January 15th, Mason Yachts sold 2 Boats for $35,000 each to a customer. The customer will pay in cash for these boats in 30 days. (Hint: Remember there are two entries with a sale of goods)
On January 30th, Mason Yachts announced that is has declared and paid a dividend of $1 to all shares of common stock.