Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The following transactions occurred in February: February

image text in transcribed

Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The following transactions occurred in February: February 1 Paid $290 for rent of hangar space in February. February 2 Purchased fuel costing $540 on account for the next flight to Dallas. February 4 Received customer payment of $870 to ship several items to Philadelphia next month. February 7 Flew cargo from Denver to Dallas; the customer paid $840 for the air transport. February 10 Paid $170 for an advertisement in the local paper to run on February 19. February 14 Paid pilot $2,800 in wages for flying in January (recorded as expense in January). February 18 Flew cargo for two customers from Dallas to Albuquerque for $4,200; one customer paid $1,700 cash and the other asked to be billed. February 25 Purchased on account $2,570 in spare parts for the planes. February 27 Declared a $210 cash dividend to be paid in March. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Date General Journal Debit Credit 1 February 01 Rent expense 290 Cash 290 2 February 02 540 Fuel expense Accounts payable 540 3 February 04 Cash 870 Unearned revenue 870 4 February 07 Cash 840 Transport revenue 840 5 February 10 Advertising expense 170 Cash 170 6 February 14 X 2,800 Wage expense Cash 2,800 7 February 18 Cash 1,700 Accounts receivable 2,500 Transport revenue 4,200 8 February 25 Equipment x 2,570 Accounts payable 2,570 9 February 27 Dividends payable x 210 Cash x 210

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting

Authors: Frank Wood, Alan Sangster

7th Edition

0273619829, 9780273619826

More Books

Students also viewed these Accounting questions