Fly-In Service, Inc., operates leased amphibious aircraft and docking facilities, equipping the firm to transport campers and
Question:
Fly-In Service, Inc., operates leased amphibious aircraft and docking facilities, equipping the firm to transport campers and hunters from Vancouver, Canada, to outpost camps owned by various resorts. On August 1 , the firm's trial balance was as follows:
During the month of August, the following transactions occurred:
1 Paid August rental cost for aircraft, dockage, and dockside office, \(\$ 5,000\).
2 Paid insurance premium for August, \(\$ 1,200\).
3 Paid for August advertising in various sports magazines, \(\$ 1,000\).
4 Rendered fly-in services for various groups for cash, \(\$ 15,500\).
5 Billed the Canadian Ministry of Natural Resources for services in transporting mapping personnel, \(\$ 4,400\).
6 Received \(\$ 17,400\) on account from clients.
7 Paid \(\$ 2,100\) on accounts payable.
8 Billed various clients for services, \(\$ 16,400\).
9 Paid interest on a note payable for August, \(\$ 25\).
10 Paid August wages, \(\$ 12,800\).
11 Received invoice for the cost of fuel used during August, \(\$ 3,800\).
12 Paid a cash dividend, \(\$ 5,000\).
Required
a. Set up accounts for each item in the August I trial balance and enter the beginning balances. Also provide accounts for the following items: Service Fees Earned, Wage Expense, Advertising Expense, Rent Expense, Fuel Expense, Insurance Expense, and Interest Expense. Prepare journal entries and record the transactions for August in the appropriate \(\mathrm{T}\)-accounts, using the references given.
b. Prepare a trial balance as of August 31 .
Step by Step Answer:
