Transaction Analysis and Trial Balance

BC Back-Country Airlines, Inc., operates leased amphibiousaircraft and docking facilities, equipping the firm to transportcampers and hunters from British Columbia, Canada, to outpost campsowned by various resorts. On August 1, the firm's trial balance wasas follows:

BC BACK-COUNTRYAIRLINES, 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

During August, the following transactions occurred:

Aug	1	Paid August rental cost for aircraft, dockage, and docksideoffice, $6,800.
	2	Paid the insurance premium for August, $3,600.
	3	Paid for August advertising in various sports magazines,$2,300.
	4	Rendered fly-in services for various groups for cash,$17,550.
	5	Billed the Canadian Ministry of Natural Resources for servicesin transporting mapping personnel, $4,700.
	6	Received $21,200 on account from clients.
	7	Paid $2,500 on accounts payable.
	8	Billed various clients for services, $20,200.
	9	Paid interest on an outstanding note payable for August,$155.
	10	Paid August wages, $15,600.
	11	Received invoice for the cost of fuel used during August,$4,400.
	12	Paid a cash dividend, $5,300 (debit Retained Earnings).

Cash
Beg	Answer	Answer
(1)	Answer	Answer
(2)	Answer	Answer
(3)	Answer	Answer
(4)	Answer	Answer
(6)	Answer	Answer
(7)	Answer	Answer
(9)	Answer	Answer
(10)	Answer	Answer
(12)	Answer	Answer
Bal	Answer	Answer

Accounts Receivable
Beg	Answer	Answer
(5)	Answer	Answer
(6)	Answer	Answer
(8)	Answer	Answer
Bal	Answer	Answer

Notes Payable
Beg	Answer	Answer
Bal	Answer	Answer

Accounts Payable
Beg	Answer	Answer
(7)	Answer	Answer
(11)	Answer	Answer
Bal	Answer	Answer

Common Stock
Beg	Answer	Answer
Bal	Answer	Answer

Retained Earnings
Beg	Answer	Answer
(12)	Answer	Answer
Bal	Answer	Answer

Interest Expense
(9)	Answer	Answer
Bal	Answer	Answer

Service Fees Earned
(4)	Answer	Answer
(5)	Answer	Answer
(8)	Answer	Answer
Bal	Answer	Answer

Rent Expense
(1)	Answer	Answer
Bal	Answer	Answer

Wage Expense
(10)	Answer	Answer
Bal	Answer	Answer

Insurance Expense
(2)	Answer	Answer
Bal	Answer	Answer

Advertising Expense
(3)	Answer	Answer
Bal	Answer	Answer

Fuel Expense
(11)	Answer	Answer
Bal	Answer	Answer

b. Prepare a trial balance as of August 31, 2016.

BC BACK-COUNTRYAIRLINES, INC. Trial Balance August 31,2016
		Debit		Credit
Cash		$Answer		$Answer
Accounts Receivable		Answer		Answer
Accounts Payable		Answer		Answer
Notes Payable		Answer		Answer
Common Stock		Answer		Answer
Retained Earnings		Answer		Answer
Service Fees Earned		Answer		Answer
Wage Expense		Answer		Answer
Advertising Expense		Answer		Answer
Rent Expense		Answer		Answer
Fuel Expense		Answer		Answer
Insurance Expense		Answer		Answer
Interest Expense		Answer		Answer
Totals		$Answer		$Answer Transaction Analysis and Trial Balance BC Back-Country Airlines, Inc., operates leased amphibiousaircraft and docking facilities, equipping the firm to transportcampers and hunters from British Columbia, Canada, to outpost campsowned by various resorts. On August 1, the firm's trial balance wasas follows: BC BACK-COUNTRYAIRLINES, 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 During August, the following transactions occurred: Aug 1 Paid August rental cost for aircraft, dockage, and docksideoffice, $6,800. 2 Paid the insurance premium for August, $3,600. 3 Paid for August advertising in various sports magazines,$2,300. 4 Rendered fly-in services for various groups for cash,$17,550. 5 Billed the Canadian Ministry of Natural Resources for servicesin transporting mapping personnel, $4,700. 6 Received $21,200 on account from clients. 7 Paid $2,500 on accounts payable. 8 Billed various clients for services, $20,200. 9 Paid interest on an outstanding note payable for August,$155. 10 Paid August wages, $15,600. 11 Received invoice for the cost of fuel used during August,$4,400. 12 Paid a cash dividend, $5,300 (debit Retained Earnings). Required a. Set up accounts for each item in the August 1 trial balanceand enter the beginning balances. Also provide similar accounts forthe following items: Service Fees Earned, Wage Expense, AdvertisingExpense, Rent Expense, Fuel Expense, Insurance Expense and InterestExpense. Create journal entries and record the transactions forAugust in the appropriate T-accounts, using the dates given. . Cash Beg Answer Answer (1) Answer Answer (2) Answer Answer (3) Answer Answer (4) Answer Answer (6) Answer Answer (7) Answer Answer (9) Answer Answer (10) Answer Answer (12) Answer Answer Bal Answer Answer Accounts Receivable Beg Answer Answer (5) Answer Answer (6) Answer Answer (8) Answer Answer Bal Answer Answer Notes Payable Beg Answer Answer Bal Answer Answer Accounts Payable Beg Answer Answer (7) Answer Answer (11) Answer Answer Bal Answer Answer Common Stock Beg Answer Answer Bal Answer Answer Retained Earnings Beg Answer Answer (12) Answer Answer Bal Answer Answer Interest Expense (9) Answer Answer Bal Answer Answer Service Fees Earned (4) Answer Answer (5) Answer Answer (8) Answer Answer Bal Answer Answer Rent Expense (1) Answer Answer Bal Answer Answer Wage Expense (10) Answer Answer Bal Answer Answer Insurance Expense (2) Answer Answer Bal Answer Answer Advertising Expense (3) Answer Answer Bal Answer Answer Fuel Expense (11) Answer Answer Bal Answer Answer b. Prepare a trial balance as of August 31, 2016. BC BACK-COUNTRYAIRLINES, INC. Trial Balance August 31,2016 Debit Credit Cash $Answer $Answer Accounts Receivable Answer Answer Accounts Payable Answer Answer Notes Payable Answer Answer Common Stock Answer Answer Retained Earnings Answer Answer Service Fees Earned Answer Answer Wage Expense Answer Answer Advertising Expense Answer Answer Rent Expense Answer Answer Fuel Expense Answer Answer Insurance Expense Answer Answer Interest Expense Answer Answer Totals $Answer $Answer