Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need answer for A through E... Thank you c. Three of September's transactions involve cash payments, yet only one of these transactions is recorded

image text in transcribed

image text in transcribed

I need answer for A through E... Thank you

c. Three of September's transactions involve cash payments, yet only one of these transactions is recorded as an expense. Describe three situations in which a cash payment would nor involve recognition of an expense. In June, current year. Wendy Winger organized a corporation to provide aerial photography ser- vices. The company, called Aerial Views, began operations immediately. Transactions during the month of June were as follows. LO3-1. LO3-2. LO3-3, L03-4 LO3-5, LO3-6, LO3-7, L03-8 L03-9, L03-10 PROBLEM 3.4A The Accounting Cycle Journaling Posting, and Preparing a Tral Balance June 1 The corporation issued 60.000 shares of capital stock to Wendy Winger in exchange for 500,000 cash. June 2 Purchased a plane from Utility Aircraft for $220.000. Made a $40.000 cash down payment and issued a note payable for the remaining balance. June 4 Paid Woodrow Airport S2.500 to rent office and hangar space for the month. June 15 Billed customers $8.320 for aerial photographs taken during the first half of June. June 15 Paid S5.880 in salaries earned by employees during the first half of June. June 18 Paid Hannigan's Hangar $1.890 for maintenance and repair services on the company plane. June 25 Collected 54910 of the amounts billed to customers on June 15. June 30 Billed customers $16,450 for aerial photographs taken during the second half of the month June 30 Paid S6,000 in salaries earned by employees during the second half of the month June 30 Received a $2.510 hill from Peatree Petroleum for aircraft fuel purchased in June The entire amount is due July 10. June 30 Declared a $2.000 dividend payable on July 15. The account titles used by Aerial Views are: Cash Retained Earnings Accounts Receivable Dividends Aircraft Aerial Photography Revenue Notes Payable Maintenance Expense Accounts Payable Fuel Expense Dividends Payable Salaries Expense Cupital Stock Rent Expense Instructions Analyze the effects that each of these transactions will have on the following six components of the company's financial statements for the month of June. Organize your answer in tabular form ing the column headings shown Use for increase. D for decrease, and NE for no efect The Jane I transaction is provided for you Income Statement traction Balance Sheet June 1 Revenue - Expenses Net Income NE NE Assets = Liabilities NE Owners' Equity PS4 b. Prepare journal entries (including explanations) for each transaction CPosteach transaction to the appropriate ledger accounts (use a running balance format as illus trated in Exhibit 3-4). d. Prepare a trial balance dated June 30, current year. e. Using figures from the trial balance prepared in part d, compute total assets, total liabilities, and owners' equity. Are these the figures that the company will report in its June 30 balance sheet? Explain your answer briefly

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

Risk Management In Organisations An Integrated Case Study Approach

Authors: Margaret Woods

2nd Edition

1138632333, 9781138632332

More Books

Students also viewed these Accounting questions

Question

When are adjusting entries completed, and what is their purpose?

Answered: 1 week ago