Great Outdoors Airlines, Inc., operates leased amphibious aircraft and docking facilities, equipping the firm to transport campers and hunters from British Columbia, Canada, to outpost camps owned by various resorts. On August 1 , the firm's trial balance was as follows:

During August the following transactions occurred:

1 Paid August rental cost for aircraft, dockage, and dockside office, \(\$ 8,100\).

2 Paid the insurance premium for August, \(\$ 2,800\).

3 Paid for August advertising in various sports magazines, \(\$ 1,500\).

4 Rendered services for various groups for cash, \(\$ 15,900\).

5 Billed the Canadian Ministry of Natural Resources for services in transporting mapping personnel, \(\$ 5,100\).

6 Received \(\$ 21,000\) on account from clients.

7 Paid \(\$ 1,700\) on accounts payable.

8 Billed various clients for services, \(\$ 19,400\).

9 Paid interest on an outstanding note payable for August, \(\$ 95\).

10 Paid August wages, \(\$ 14,800\).

11 Received invoice for the cost of fuel used during August, \(\$ 5,600\).

12 Paid a cash dividend, \(\$ 2,500\).

Required

a. Set up accounts for each item in the August 1 trial balance and enter the beginning balances. Also provide similar accounts for the following items: Service Fees Earned, Dividends, Wages Expense, Advertising Expense, Rent Expense, Fuel Expense, Insurance Expense, and Interest Expense. Create journal entries and record the transactions for August in the appropriate T-accounts, using the references given.

b. Prepare a trial balance as of August 31 .

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Cash....... Accounts receivable. Accounts payable... Notes payable... Common stock... Retained earnings Totals..... GREAT OUTDOORS AIRLINES, INC. Unadjusted Trial Balance August 1 Debit Credit $ 88,600 23,200 $ 1,700 6,000 83,000 21,100 $111,800 $111,800