Analyzing transacations using the financial statement effects template and preparing an income statement (P2-62) and Recording transaction in journal entries and T-accounts (P2-63)
Please use the FSET template below for P2-62
b. on its level and any trends thai ffects Template and Preparino Analyzing Transactions Using the Financial Statement E Income Statement What would you expect to be the major cost categorles tu c. On June 1,2015, a group of pilots in Melbourne, Australia, formed Outback Flights by issuine mon stock for $50,000 cash. The group then leased several amphibious aircraft and docking ties, equipping them to transport campers and hunters to outpost camps owned by various in remote parts of Australia. The following transactions occurred during June 2015, and com accounts include the following: Cash, Accounts Receivable, Prepaid Insurance, Accounts Pa Common Stock, Retained Earnings, Flight Services Revenue, Rent Expense, Enterta Expense, Advertising Expense, Insurance Expense, Wages Expense, and Fuel Expense. P2-62. L01, 2, 3, 4 pany yable 1. Issued common stock for $50,000 cash 2. Paid $4,800 cash for June rent of aircraft, dockage, and dockside office 3. Re ceived $1,600 invoice for the cost of a reception to entertain resort owners in June. 4. Paid $900 cash for June advertising in various sport magazines. 5. Paid $1,800 cash for insurance premium for July 6. Rendered flight services for various groups for $22,700 cash. 7. Billed client $2,900 for transporting personnel, and billed various firms for $13,000 in flight services 8. Paid $1,500 cash to cover accounts payable. 9. Received $13,200 on account from clients in transaction 7 10. Paid $16,000 cash to cover June wages. 11. Received $3,500 invoice for the cost of fuel used during June. 12. Declared and paid a $3,000 cash dividend. REQUIRED a. Report the effects for each of the separate transactions 1 through 12 using the financial state- ment effects template. Total all columns and prove that (1) assets equal liabilities plus equity at June 30, 2015, and (2) revenues less expenses equal net income for June. b. Prepare an income statement for the month of June. Recording Transactions in Journal Entries and T-Accounts Use the information in Problem 2-62 to complete the following requirements. REQUIRED a. Prepare journal entries for each of the transactions 1 through 12. 06 ( P2- et up T-accounts for each of the accounts used in part a and post the journal entries to those T-accounts b. S Balance Sheet Cash Noncash Liabil- Contrib. Earned Revenues ExpensesNet Income AssetAssets ities Capital Capital a. Receive merchandise inventory costing $9,000 purchased with cash. b. Sell half of inventory in (a) for $7,500 on credit. c. Place order for $5,000 of additional merchandise inventory to be delivered FSET Template Example. next month. d. Pay employee $4,000 for tion during the month. e. Pay $7,000 rent for use of premises during the month f. Receive full payment from customer in part (b)
