Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Transaction Analysis On June 1, a group of bush pilots in British Columbia, Canada, formed the Adventure Airlines, Inc., by selling $51,000 of common stock

image text in transcribedimage text in transcribed

Transaction Analysis On June 1, a group of bush pilots in British Columbia, Canada, formed the Adventure Airlines, Inc., by selling $51,000 of common stock for cash. The group then leased several aircraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts. The following transactions occurred during June: 1 Sold common stock for cash, $51,000. 2 Paid June rent for aircraft, dockage, and dockside office, $5,500. 3 Received invoice for the cost of a reception the firm gave to entertain resort owners, $3,100. 4 Paid for June advertising in various sports magazines, $1,900. 5 Paid insurance premium for June, $2,750. 6 Rendered services for various groups for cash, $25,000. 7 Billed the Canadian Ministry of Natural Resources for transporting mapping personnel, $4,900, and billed various firms for services, $16,750. 8 Paid $1,200 on accounts payable. 9 Received $14,200 on account from clients. 10 Paid June wages, $16,000. 11 Received an invoice for the cost of fuel used during June, $3,500. 12 Paid a cash dividend, $6,000. Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and Retained Earnings. (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of June 30. Note: Use a negative sign with your answers, when needed. Cash + Accounts Receivable = Accounts Payable + Common Stock + Retained Earnings $ 0 0 0 $ 0 0 0 $ $ $ $

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

Contemporary Debates On Politics And Public Administration In The Postmodern Era

Authors: Ă–mer Ugur, Kadir Caner Dogan

1st Edition

3631796331, 9783631796337

More Books

Students also viewed these Accounting questions

Question

What do you know of my (the interviewers) research program?

Answered: 1 week ago

Question

=+Show photos of consumers?

Answered: 1 week ago

Question

=+Exhibit children's artwork?

Answered: 1 week ago

Question

=+What kind of product or service would work in these locations?

Answered: 1 week ago