Reference no: EM132621104

Question - Geotechnical Testing services operates a large Catamaran which takes tourists at several island resorts on diving and sailing excursions. The company adjusts and closes its accounts at the end of each month. Selected account balances appearing on June 30 adjusted trial balance are as follows: Prepaid rent $6000 Unexpired insurance 1400 Catamaran 46200 Accumulated depreciation-catamaran $9240 Unearned passenger revenue 825 Other Data a) Six months rent had been prepaid on June 1. b) The unexpired insurance is a 12-month fire insurance policy purchased on March 1. c) The Catamaran is being depreciated over a 10-years estimated useful life, with no residual value. d) The unearned passenger revenue represents tickets good for future rides sold to a resort hotel for $15 per tickets on June 1.During June, 145 of the tickets were used.

Instructions -

a) Determine 1. The monthly rent expense. 2. The original cost of the 12-months fire insurance policy. 3. The age of Catamaran in months. 4. How many $15 tickets for future rides were sold to the resort hotel on June 1.

b) Prepare the adjusting entries which were made on June 30.