From the book financial accounting for undergraduates third edition problem P2-14B to use the following info to answer A and B below:
Airlines Inc operates leased aircraft and docking facilties. As of August 1st, the firm's trial balance is as follows.
Cash: 88,600 (in debit)
Accounts Receivable 23,200 (in debit)
Notes payable 1,700 (in credit)
common stock 83,000 (in credit)
retained earnings: 21,100 (in credit)
Totals: 111,800 in debit and 111,800 in credit
The following transactions accured during August:
Aug 1st: Paid August rental cost for aircraft, dockage and dockside office, $7,500
2nd: paid the insurance premium for August, $2,800
3rd Paid for August advertising in various sports magazines, $1,500
4th Rendered services for various groups for cash, $16,750
5th Billed the Canadian Ministry of Natural Resources for services in transporting mapping personnel, $5,100
6th Receeived $20,400 on acount from clients
7th paid $1,700 on accounts payable
8th billed various clients for services, $19,400
9th paid interest on an outstanding note payable for August, $95
10th paid August wages, $14,800
11th Received an invoice for the cost of fuel used during August, $5,600
12th paid a cash dividend, $2,500 (debit retained Earnings.)
A. Set up accounts for each item in the August 1 trail balance and enter the beginning balances. Also proide simliar accounts for hte following items: Service Fees Earned, Wages Expense, Advertising Expense, Rent Expense, Fuel Expense, Insurance Expense, and Intrest Expense. Create journal entries and record the trasactions for August in the appropriate T-accounts, usin the dates given.
B. Prepare a trail balance as of August 31st, 2016.