Reference no: EM131814684

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.