Island Hopper is an airline providing passenger and freight service... Island Hopper is an airline providing passenger and freight service among some Pacific islands. The accounts are adjusted and closed each month. At June 30

the following trial balance was prepared from the ledger.

lsland Hopper

Trial Balance

June i0, 19-

Cash $ 23,600

Accounts receivable . . 7200

Prepaid rent . .9600

Unexpired insurance21000

Aircraft1200000

Accumulated depreciation : ai rcraft 380000

Notes payable 600000

Advance ticket sales 60000

Mary Earhart, capital . . . 230850

Mary Earhart, drawing 7000

Freight revenue 130950

Fuel expense53800

Salaries expense 66700

Maintenance expense12900

Totals. 1401800. 1401800

(a) One of Island Hopper's regular customers is Pacific Trading Co. The keeps track of the weight of freight carried for the trading company during the month and sends a bill shortly after month-end. No entry has yet been made to record $4,6m earned in June carrying freight for Pacific Trading Co.

(b) The prepaid rent was for three months, starting on June 1.

(c) On April l, an l2-month insurance policy had been purchased for $25,20A.

(d) The aircraft is being depreciated over a period of l0 years.

(e) During June, $38,650 of the advance ticket sales was earned as the passengers took their flights.

(f) Salaries earned by employees but not yet recorded or paid amount to $3,300 at June 30.

(g) Accrued interest on notes payable amounts to $5,000 at June 30 and has not yet been recorded.

a Prepare a work sheet for the month endcd June 30, l9-.

b Prepare an income statement, a statement of owner's equity, and a balance sheet

c Prepare adjusting and closing journal entries

Answer rating: 100% (QA)

Answer Explanation 10Column Work Sheet 0 Unadjusted Trial Balance Adjusted Trial Balance Balance She... View the full answer