In j une 2011 wendy winger organiz ed a c orporation

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: z ed a c orporation to prov ide aerial photography s erv ic es . The c ompany , c alled Aerial Views , began operations immediately . Trans ac tions during the month of J une were as follows : June 1 The c orporation is s ued 60,000 s hares of c apital s toc k to Wendy Winger in ex c hange for $60,000 c as h. June 2 Purc has ed a plane from Utility Airc raft for $220,000. Made a $40,000 c as h down pay ment and is s ued a note pay able for the remaining balanc e. June 4 Paid Woodrow Airport $2,500 to rent offic e and hangar s pac e for the month. June 15 Billed c us tomers $8,320 for aerial photographs tak en during the firs t half of J une. June 15 Paid $5,880 in s alaries earned by employ ees during the firs t half of J une. June 18 Paid Hannigan's Hangar $1,890 for maintenanc e and repair s erv ic es on the c ompany plane. June 25 Collec ted $4,910 of the amounts billed to c us tomers on J une 15. June 30 Billed c us tomers $16,450 for aerial photographs tak en during the s ec ond half of the month. June 30 Paid $6,000 in s alaries earned by employ ees during the s ec ond half of the month. June 30 Rec eiv ed a $2,510 bill from Peatree Petroleum for airc raft fuel purc has ed in J une. The entire amount is due J uly 10. June 30 Dec lared a $2,000 div idend pay able on J uly 15. The ac c ount titles us ed by Aerial Views are: Cas h Ac c ounts Rec eiv able Airc raft Notes Pay able Ac c ounts Pay able Div idends Pay able Capital Stoc k Retained Earnings Div idends Aerial Photography Rev enue Maintenanc e Ex pens e Fuel Ex pens e Salaries Ex pens e Rent Ex pens e a. Analy z e the effec ts that eac h of thes e trans ac tions will hav e on the following s ix c omponents of the c ompany 's financ ial s tatements for the month of J une. Organiz e y our ans wer in tabular form, us ing the c olumn headings s hown. Us e I for inc reas e, D for dec reas e, and NE for no effec t. The J une 1 trans ac tion is prov ided for y ou: Inc ome Statement Trans ac tion J une 1 J une 2 J une 4 J une 15 J une 15 J une 18 J une 25 J une 30 J une 30 J une 30 J une 30 Rev enue NE NE NE I NE NE NE I NE NE NE – NE NE I NE I I NE NE I I NE Ex pens es = Net Inc ome NE NE D I D D NE I D D NE I I D I D D NE I D NE NE Balanc e Sheet As s ets = NE I NE NE NE NE NE NE NE I I Liabilities + Owners ' Equity I NE D I D D NE I D D D b. Prepare journal entries for abov e eac h trans ac tion. (Om it the "$" sign in your response.) Date J une 1 Cas h Capital s toc k General J ournal e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w Debit 60,000 Credit 60,000 3/7 11/18/13 Assignme nt Pr int Vie w 2 Airc raft 220,000 2,500 Cas h Notes pay able 4 Rent ex pens e Cas h 15 Ac c ounts rec eiv able Aerial photography rev enue Salaries ex pens e Cas h 18 Maintenanc e ex pens e Cas h 25 Cas h Ac c ounts rec eiv able 30 Ac c ounts rec eiv able Aerial photography rev enue Salaries ex pens e Cas h Fuel ex pens e Ac c ounts pay able Div idends Div idends pay able 40,000 180,000 2,500 8,320 5,880 1,890 4,910 16,450 6,000 2,510 2,000 8,320 5,880 1,890 4,910 16,450 6,000 2,510 2,000 c. Pos t eac h trans ac tion to the appropriate ledger a...
View Full Document

This document was uploaded on 03/03/2014 for the course MGMT ACCOU 2300 at Rensselaer Polytechnic Institute.

Ask a homework question - tutors are online