Transaction Analysis and Trial Balance

BC Back-Country Airlines, Inc., operates leased amphibious aircraft and docking facilities, equipping the firm to transport campers and hunters from British Columbia, Canada, to outpost camps owned by various resorts. On August 1, the firm's trial balance was as follows:

BC BACK-COUNTRY AIRLINES, INC. Unadjusted Trial Balance August 1, 2016
	Debit	Credit
Cash	$83,200
Accounts Receivable	23,800
Accounts Payable		$2,300
Notes Payable		3,600
Common Stock		80,000
Retained Earnings		21,100
Totals	$107,000	$107,000

During August, the following transactions occurred:

Aug	1	Paid August rental cost for aircraft, dockage, and dockside office, $6,600.
	2	Paid the insurance premium for August, $3,400.
	3	Paid for August advertising in various sports magazines, $2,100.
	4	Rendered fly-in services for various groups for cash, $17,350.
	5	Billed the Canadian Ministry of Natural Resources for services in transporting mapping personnel, $4,500.
	6	Received $21,000 on account from clients.
	7	Paid $2,300 on accounts payable.
	8	Billed various clients for services, $20,000.
	9	Paid interest on an outstanding note payable for August, $135.
	10	Paid August wages, $15,400.
	11	Received invoice for the cost of fuel used during August, $4,200.
	12	Paid a cash dividend, $5,100.

Required

a. Set up accounts for each item in the August 1 trial balance and enter the beginning balances. Also provide similar accounts for the following items: Service Fees Earned, Wage Expense, Advertising Expense, Rent Expense, Fuel Expense, Insurance Expense and Interest Expense. Create journal entries and record the transactions for August in the appropriate T-accounts, using the dates given.

b. Prepare a trial balance as of August 31, 2016.