QUESTION 2 (35 POINTS) Knights Ecotourism Inc. operates a small airplane service that takes ecotourists to the beautiful reefs around the Nylon Pool in Tobago. Individuals are required to purchase tickets at least a month in advance of their trips because of high demand during the busy season (November to March). Knights Inc. adjusts its accounts at the end of every month. Selected balances from Knights Inc. adjusted trial balance for Dec 31, 2018 appear as follows. Debit Credit Prepaid airport rent $ 9,000 Unexpired insurance 4,200 Airplane 288,000 Accumulated depreciation: airplane $80,000 Unearned passenger revenue 75,000 Other Information 1. The airplane is being depreciated over a 15-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in Jan and Feb, 2019 at $300 per ticket. 3. Six months' airport rent had been prepaid on Nov 1. 4. The unexpired insurance is what remains of a 12-month policy purchased on Aug 1. 5. Passenger revenue earned in Dec, 2018 totaled $40,000. Instructions a. Determine the following. 1. The age of the airplane in months. 2. The monthly airport rent expense. 3. The amount paid for the 12-month insurance policy on Aug 1. b. Prepare the adjusting entries made on Dec 30 involving the following accounts. 1. Depreciation Expense: Airplane 2. Airport Rent Expense 3. Insurance Expense 4. Passenger Revenue Earned