Question: Question 6 Data Ocean Dog, Inc., operates a small fishing boat that takes tourists at several island resorts on fishing excursions. The company adjusts its
Question 6 Data Ocean Dog, Inc., operates a small fishing boat that takes tourists at several island resorts on fishing excursions. The company adjusts its accounts at the end of each month. Selected account balances appearing on the March 31 adjusted trial balance are as follows: Prepaid Rent. $9,000 Unexpired Insurance 1,200 Boat 60,000 Accumulated Depreciation: Boat $8,000 Unearned Passenger Revenue. 940 Other Data 1. The boat is being depreciated over a 5-year estimated useful life with no residual value. 2. The uneamed passenger revenue represents tickets good for future rides sold to a resort hotel for $20 per ticket on March 1. During March, 40 of the tickets were used. 3. Five months' rent had been prepaid on March 1. 4. The unexpired insurance is a 12-month fire insurance policy purchased on February 1. Question 6. Determine the following: A. The age of the boat in months. B. How many $20 tickets for future rides were sold to the resort hotel on March 1. C. The monthly rent expense. D. The original cost of the 12- month fire insurance policy
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
