CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not yet

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not yet answered Marked out of 20.00 P Flag question 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 $83,200 23,800 Cash Accounts Receivable Accounts Payable Notes Payable Common Stock Retained Earnings Totals $2,300 3,600 80,000 21,100 $107,000 $107,000 During August, the following transactions occurrec: Aug 1Paid August rental cost for aircraft, dockage, and dockside office, $6,600 insurance premium for August, $3,400. 2 Paid the 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 dients 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, 54,200 12 Paid a cash dividend, S5,100 (debit Retained Earnings).

Solution

Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Aug Rent Expense      5,600.00 Cash      5,600.00 (To record payment of rent expense) 2-Aug Insurance Expense      3,400.00 Cash      3,400.00 (To record payment of insurance expense) 3-Aug Advertising Expense      2,100.00 Cash      2,100.00 (To record payment of advertising exp) 4-Aug Cash    17,350.00 Service Fees Earned    17,350.00 (To record service fees earned) 5-Aug Accounts Receivable      4,500.00 Service Fees Earned      4,500.00 (To record service fees earned) 6-Aug Cash      2,100.00 Accounts Receivable      2,100.00 (to record collections from customers) 7-Aug Accounts Payable      2,300.00 Cash      2,300.00 (To record payments on accounts payable) 8-Aug Accounts Receivable    20,000.00 Service Fees Earned    20,000.00 (To record service fees earned) 9-Aug Interest Expense          135.00 Cash          135.00 (To record payment of interest exp) 10-Aug Wage Expense    15,400.00 Cash    15,400.00 (To record payment of wages exp) 11-Aug Fuel Expense      4,200.00 Accounts Payable      4,200.00 (To record invoice for fuel used in month) 12-Aug Retained Earnings      5,100.00 Cash      5,100.00 (To record payment of dividends exp) Answer b. Cash Accounts Receivable Notes Payable Beg. Bal.      83,200.00        5,600.00 1-Aug Beg. Bal.      23,800.00      2,100.00 6-Aug Beg. Bal.        3,600.00 4-Aug      17,350.00        3,400.00 2-Aug 5-Aug        4,500.00 6-Aug        2,100.00        2,100.00 3-Aug 8-Aug      20,000.00        2,300.00 7-Aug            135.00 9-Aug      15,400.00 10-Aug        5,100.00 12-Aug End. Bal.        3,600.00 End. Bal.      68,615.00 End. Bal.      46,200.00 Accounts Payable Common Stock Retained Earnings Beg. Bal.        2,300.00 Beg. Bal.    80,000.00 Beg. Bal.      21,100.00 7-Aug        2,300.00        4,200.00 11-Aug 12-Aug      5,100.00 End. Bal.        4,200.00 End. Bal.    80,000.00 End. Bal.      16,000.00 Service Fees Earned Interest Expense Rent Expense      17,350.00 4-Aug 9-Aug            135.00 1-Aug      5,600.00        4,500.00 5-Aug      20,000.00 8-Aug End. Bal.      41,850.00 End. Bal.            135.00 End. Bal.      5,600.00 Wage Expense Insurance Expense Advertising Expenses 10-Aug      15,400.00 2-Aug        3,400.00 3-Aug      2,100.00 End. Bal.      15,400.00 End. Bal.        3,400.00 End. Bal.      2,100.00 Fuel Expense 11-Aug        4,200.00 End. Bal.        4,200.00 Answer c. BC BACK COUNTRY AIRLINES, INC. Trial Balance August 31, 2016 Accounts Title Debits Credits Cash      68,615.00 Accounts Receivable      46,200.00 Notes Payable        3,600.00 Accounts Payable        4,200.00 Common Stock      80,000.00 Retained Earnings      16,000.00 Service Fees Earned      41,850.00 Interest Expense            135.00 Rent Expense        5,600.00 Wage Expense      15,400.00 Insurance Expense        3,400.00 Advertising Expenses        2,100.00 Fuel Expense        4,200.00 Total    145,650.00    145,650.00