ISLAND HOPPER Trial Beli June 30, 2001 Cash Accounts Receivable Prepaid Rent Unexpired Insurance Aircraft Accumulated Depreciation: Aircraft Notes Payable Unearned Passenger Revenue Mary Earhart. Capital Mary Earhart. Drawing Freight Revenue Fuel Expense Salaries Expense Maintenance Expense $ 22.600 7.200 0,000 21.000 1.200.000 $ 380,000 600,000 60.000 230.850 7.000 130.950 53,800 68,700 12.000 $1.401.000 $1.401.600 Other Data 1. The aircraft is being depreciated by the straight-line method over a period of 10 years (120 months). d. The amount shown as Uneared Passenger Revenue represents tickets sold to customers in ad- vance of flights. During June, $38,650 of this amount was camed by the airline. (Credit Pas- senger Revenue.) c. Salaries camed by employees but not yet paid amount to $3,300 a June 30. d. Accrued interest on notes payable amounts to $5,000 at June 30 and has not yet been recorded. Interest is paid monthly, within 10 days of the end of the month. The $600.000 note payable matures on December 31, 2003. e. One of Island Hopper's regular customers is Pacific Trading Company. The airline keeps track of the weight of shipments carried for the trading company during the month and sends a bill shortly after month-end. No entry has yet been made to record 54.600 earned in lune carty- ing freight for Pacific Trading Company. 1. Three months' rent ($14,400) had been prepaid on May 1. On April 1, a 12-month insurance policy, find been purchased for $23.200. Instructions 2. Prepare a worksheet for the month ended June 30, 2001. by Prepare an income statement for the month, a statement of owner's equity for the month, and a balance sheet at June 30, 2001. c. Draft two notes to accompany Island Hopper's financial statements at June 30, 2001. The first should disclose depreciation methods in use and depreciable lives of assets being depreciated. The second should disclose due dates of major liabilities. d. Prepare adiursting and closing tries