Transaction Analysis and Trial Balance BC Back-Country Airlines, Inc., operates
ID: 2328777 • Letter: T
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:
During August, the following transactions occurred:
b. Prepare a trial balance as of August 31, 2016.
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:
During August, the following transactions occurred:
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.
BC BACK-COUNTRY AIRLINES, INC.Unadjusted Trial Balance
August 1, 2016 Debit Credit Cash $83,400 Accounts Receivable 24,000 Accounts Payable $2,500 Notes Payable 3,800 Common Stock 80,000 Retained Earnings 21,100 Totals $107,400 $107,400
Explanation / Answer
a.
b.
Transaction Account Titles and Explanation Debit Credit 1 Rent expense 6800 Cash 6800 (To record rent expense paid) 2 Insurance expense 3600 Cash 3600 (To record insurance expense paid) 3 Advertising expense 2300 Cash 2300 (To record advertising expense paid) 4 Cash 17550 Service fees earned 17550 (To record services rendered for cash) 5 Accounts receivable 4700 Service fees earned 4700 (To record services billed) 6 Cash 21200 Accounts receivable 21200 (To record receipt on account) 7 Accounts payable 2500 Cash 2500 (To record payment on account) 8 Accounts receivable 20200 Service fees earned 20200 (To record services billed) 9 Interest expense 155 Cash 155 (To record interest expense paid) 10 Wage expense 15600 Cash 15600 (To record wage expense paid) 11 Fuel expense 4400 Accounts payable 4400 (To record invoice for cost of fuel) 12 Retained earnings 5300 Cash 5300 (To record cash dividend paid)Related Questions
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