The trial balance of Northern Airlines at January 31 is shown. It was prepared a
ID: 2390510 • Letter: T
Question
The trial balance of Northern Airlines at January 31 is shown. It was prepared after posting the recurring transactions for the month of January, but it does not reflect any month-end adjustments.
Northern Airlines
UNADJUSTED TRIAL BALANCE
January 31, 2016
1
Cash
75,100.00
2
Parts Inventory
50,000.00
3
Land
80,000.00
4
Buildings-Hangars
370,000.00
5
Accumulated Depreciation-Hangars
36,000.00
6
Equipment-Aircraft
650,000.00
7
Accumulated Depreciation-Aircraft
120,000.00
8
Tickets Sold in Advance
86,000.00
9
Capital Stock
500,000.00
10
Retained Earnings
481,100.00
11
Ticket Revenue
53,000.00
12
Maintenance Expense
20,000.00
13
Wage and Salary Expense
31,000.00
14
Totals
1,276,100.00
1,276,100.00
The following additional information is available:
Required:
ACCOUNT TITLE DEBIT CREDIT1
Cash
75,100.00
2
Parts Inventory
50,000.00
3
Land
80,000.00
4
Buildings-Hangars
370,000.00
5
Accumulated Depreciation-Hangars
36,000.00
6
Equipment-Aircraft
650,000.00
7
Accumulated Depreciation-Aircraft
120,000.00
8
Tickets Sold in Advance
86,000.00
9
Capital Stock
500,000.00
10
Retained Earnings
481,100.00
11
Ticket Revenue
53,000.00
12
Maintenance Expense
20,000.00
13
Wage and Salary Expense
31,000.00
14
Totals
1,276,100.00
1,276,100.00
Explanation / Answer
1)
T-Accounts: DEBIT AMOUNT$ CREDIT AMOUNT$ Parts Inventory: o/b 50000 a 13900 CB 36100 Maintenance Expense: o/b 20000 cb 33900 a 13900 Depreciation Account b 18000 cb 78000 c 60000 Acc Dep - Hanger : cb 54000 o/b 36000 b 18000 Acc Dep - Aircrafts: cb 180000 o/b 120000 c 60000 Tickets sold in advance: d 69000 o/b 86000 cb 17000 Ticket Revenue: cb 122000 o/b 53000 d 69000 Wage and Salary Expense: o/b 31000 cb 38500 e 7500 wage and salary payable: e 7500 Rent Revenue: f 2400 Rent receivable: f 2400 Tax expense : (122000+2400-33900-78000-38500)*0.34=-8840 g 8840 Tax credit receivable: g 8840Related Questions
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