Question
Please help me create this T account!! Enter the following transactions for the Fly by Night FBO, Inc. (FbN) for the year 2019 in a
Please help me create this T account!!
Enter the following transactions for the Fly by Night FBO, Inc. (FbN) for the year 2019 in a T account ledger. (Read the transactions carefully. Some have entries in more than one month. Use straight-line depreciation.)
- On January 1, 2019 the FbN issues 5,000 share of stock in the corporation at $25.00 per share.
- On January 15th two acres of land are purchased as a building site, paying $10,000 per acre.
- On February 28th office furnishings are purchased from Office Depot at a total cost of $4,400. A down payment of $2,000 cash was made and a promissory note was issued to make equal monthly payments for a year for the balance. The first payment is to be made on March 1. The office furnishing has a useful life of 5 years and a salvage value of $200.
- On February 28th a hangar is constructed. The cost of the hangar was $25,500. FbN pays $6,000 down and signs a 5% mortgage for the balance ($855 per month for 24 months). The first payment is due on April 1st. See amortization table. The hangar has a useful life of 20 years and a salvage value of $1,500.
- On March 1st $5,000 parts inventory is purchased on account from the Textronico Company. FnB agrees to pay Textronico $1,000 per month for the inventory beginning on April 1st.
- On March 1st contracts with Amerwont Utilites to provide electric and gas service for a flat $500 per month, including a $200 connection fee payable with the first payment on April 1st.
- On March 1st $2,800 cash is paid for hangar equipment. The equipment has a useful life of 5 years and a salvage value of $100.
- On April 1st purchases a one-year comprehensive insurance policy from Gotcha Insurance for $14,400 cash.
- On April 1st purchases 4,900 gallons of fuel inventory from Philerup Company on account for $29,400.
- On April 2nd sells 2000 gallons of fuel to We-flyum, Inc, a local Part 135 operation, at a total cash price of $13,000
- On April 8th pays $10,000 to Philerup Company.
- On May 31st a balance of $19,400 is paid to Philerup Company.
- On July 15th makes a $3,100 cash purchase of parts inventory from the Chinese government. It also pays $200 of associated freight charges.
The owner of the company takes a break and cruises the Caribbean in a friends yacht for three months. No purchases or sales are made, but the mortgage and other monthly expenses are still paid.
- On November 1st provides maintenance services worth $20,000 for the Spitfire Crop Dusting Company aircraft and billed the company. The Spitfire service used $2,500 worth of parts.
- On November 1st provides maintenance service for Parks Flying Service aircraft for $40,000 cash. The Parks Flying Service repair used $4,500 worth of parts.
- On December 1st FbN rents a portion of its building to Georges Engine Repair Service, receiving three months rent at $150 per month.
Amortization Table for Hangar Mortgage
| Beg Balance | Interest | End Balance |
April | $19,500 | $81 | $19,581 |
May | $18,726 | $78 | $18,804 |
June | $17,949 | $75 | $18,024 |
July | $17,169 | $72 | $17,241 |
August | $16,386 | $68 | $16,454 |
September | $15,599 | $65 | $15,664 |
October | $14,809 | $62 | $14,871 |
November | $14,016 | $58 | $14,074 |
December | $13,219 | $55 | $13,274 |
| $12,419 |
|
|
Principle and | $7,081 | $614 |
|
Interest Paid |
|
|
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