PROBLEM 3.4A THE ACCOUNTING CYCLE: JOURNALIZING, POSTING AND PREPARING A TRIAL BALANCE In June, current year, 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 issues a note payable for the balance of the purchase price.

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 Hannigans 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