John air service operates a small air planes providing passenger and freight service to small towns,...
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John air service operates a small air planes providing passenger and freight service to small towns, oil field, fishing lodges and other remote locations in Alaska. The business adjusts and closes its accounts each month. At May 31, the trial balance appeared as follows: Cash........ Accounts receivable. Prepaid rent... Unexpired insurance.... Air planes....... Accumulated planes..... Notes payable..... ....450,000 Unearned JOHN, S AIR SERVICE TRIAL BALANCE MAY 31, 2018 revenue...... O'Connell, capital...... 750 O'Connell, drawing. Passenger revenue... 54,250 Fuel expense. Salaries expense...... Maintenance expense.. 1,084,000 depreciation: ......$22,750 ..28,300 ..8,100 ...36,900 ...855,000 $232,750 passenger .175,250 .7,750 .47,600 .70,900 .6,700 air .171, 1,084,000 Other data • No entry has yet been made in the air lines accounting records to record $11,750 passenger revenue earned in May from Yukon Oil Company which has paid in advance. Three month's rent had been prepaid on May 1. • On Jan 1, 12 month insurance policy had been purchased for $49,200 O'Connell, depreciates its airplanes over a period of 15 years Accrued interest on notes payable amounts to $450 at May 31 and has not yet been recorded Transport services rendered to passengers during the month but not yet collected $2,900 . REQUIREMENTS Prepare the necessary adjusting entries for May. • Prepare Adjusted Trial Balance with help of adjusting T Accounts. John air service operates a small air planes providing passenger and freight service to small towns, oil field, fishing lodges and other remote locations in Alaska. The business adjusts and closes its accounts each month. At May 31, the trial balance appeared as follows: Cash........ Accounts receivable. Prepaid rent... Unexpired insurance.... Air planes....... Accumulated planes..... Notes payable..... ....450,000 Unearned JOHN, S AIR SERVICE TRIAL BALANCE MAY 31, 2018 revenue...... O'Connell, capital...... 750 O'Connell, drawing. Passenger revenue... 54,250 Fuel expense. Salaries expense...... Maintenance expense.. 1,084,000 depreciation: ......$22,750 ..28,300 ..8,100 ...36,900 ...855,000 $232,750 passenger .175,250 .7,750 .47,600 .70,900 .6,700 air .171, 1,084,000 Other data • No entry has yet been made in the air lines accounting records to record $11,750 passenger revenue earned in May from Yukon Oil Company which has paid in advance. Three month's rent had been prepaid on May 1. • On Jan 1, 12 month insurance policy had been purchased for $49,200 O'Connell, depreciates its airplanes over a period of 15 years Accrued interest on notes payable amounts to $450 at May 31 and has not yet been recorded Transport services rendered to passengers during the month but not yet collected $2,900 . REQUIREMENTS Prepare the necessary adjusting entries for May. • Prepare Adjusted Trial Balance with help of adjusting T Accounts.
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Related Book For
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt
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