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E3-11 (Static) Recording Journal Entries and Determining Net Income [LO 3-2, LO 3-3) Greek Peak is a ski resort in upstate New York. The company sells lift tickets, ski lessons, and ski equipment. It operates several restaurants and rents townhouses to vacationing skiers. The following hypothetical December transactions are typical of those that occur at the resort a. Borrowed $500,000 from the bank on December 1, signing a note payable, due in six months. b. Purchased a new snowplow for $20,000 cash on December 31 c. Purchased ski supplies for $10,000 on account. d. Incurred $22,000 in routine maintenance expenses for the chairlifts; paid cash. e. Received $72,000 for season passes (beginning in the new year) - Daily lift passes were sold this month for a total of $76,000 cash. g. Received a $320 deposit on a townhouse to be rented for five days in January h. Paid half the charges incurred on account in (c) Incurred and paid $18,000 in wages to employees for the month of December Required: 1. Prepare accrual basis journal entries for each transaction 2. Calculate the company's preliminary net income. Complete this question by entering your answers in the tabs below. Required! Required 2 Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) mework Saved Required 1 Required 2 Prepare accrual basis journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Borrowed $500,000 from the bank on December 1, signing a note payable, due in six months. Record the transaction. Note: Enter debits before credits Transaction General Journal Debit Credit a Record entry Clear entry View general Journal

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