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General Details |
| Title: |
Accounting help (#373B) |
| Category: |
Accountants |
| Inquirer: |
chillk5 |
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Initial Price: |
$9.99 |
| Description: |
Question #2.
In June 2005, Wendy Winger organized a corporation to provide aerial photography services. The company, called Aerial Views, began operations immediately. Transactions during the month of June were as follows:
June 1
The corporation issued 60,000 shares of capital stock to Wendy Winger in exchange for $60,000 cash.
June 2
Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance
June 4
Paid Woodrow Airport $2,500 to rent office and hangar space for the month.
June 15
Billed customers $8,320 for aerial photographs taken during the first half of June.
June 15
Paid $5,880 in salaries earned by employees during the first half of June.
June 18
Paid Hannigan's Hangar $1,890 for maintenance and repair services on the company plane.
June 25
Collected $4,910 of the amounts billed to customers on June 15.
June 30
Billed customers $16,450 for aerial photographs taken during the second half of the month
June 30
Paid $6,000 in salaries earned by employees during the second half of the month.
June 30
Received a $2,510 bill from Peatree Petroleum for aircraft fuel purchased in June. The entire amount is due July 10
June 30
Declared a $2,000 dividend payable on July 15.
The account titles used by Aerial Views are:
Cash
Retained Earnings
Accounts Receivable
Dividends
Aircraft
Aerial Photography Revenue
Notes Payable
Maintenance Expense
Accounts Payable
Fuel Expense
Dividends Payable
Salaries Expense
Capital Stock
Rent Expense
Instructions
Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of JuneOrganize your answer in tabular form, using the column headings shown. Use I for increase, D for decrease, and NE for no effect. The June 1 transaction is provided for you:
Prepare journal entries (including explanations) for each transaction.
Post each transaction to the appropriate ledger accounts (use a running balance format as illustrated in Exhibit 3-4 on page 103).
Prepare a trial balance dated June 30, 2005.
Using figures from the trial balance prepared in part d, compute total assets, total liabilities, and owners' equity. Are these the figures that the company will report in its June 30 balance sheet? Explain your answer briefly.
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| Service Request Expires: |
Question closed |
| End Time: |
2006-07-24 14:11:22 Started:
2006-07-24 14:07:43
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| Geography Constraints: |
No Location Requirement |
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