90.2K

Verified Solution

Link Copied!

Transaction Analysis On June 1, a group of bush pilots in Thunder Bay, Ontario, Canada, formed the Outpost Fly.In Service, Inc, by selling $50,000 of common stock for cash. The group then leased several amphibious arcraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts. The following transactions occurred during June: June 1 Sold common stock for cash, 553,000 2 Paidune rent for aircraft, dockages, and dockside office 17.00 3 Received more for the cost of a reception the firm gave to entertain resort owners, 54.600 4 Paid for une advertising in various sports marines 2000 5 Paid insurance premium for june 54.800 6 Rendered services for various for cash 25.700 7 Biled the Canadian Mary of Natural Resources for tranporting mapping personnel 55.900 and bed various firms for fin services, 316,000 Paid 4500 on accounts payable 10 Paide wage 515.000 11 Received in for the cost of fuel used durinn, 16.500 12 Pa da casa dividend. 5500 MacBook Air 80 1 A * 1 7 $ 4 3 % 5 & 7 1 0 2 6 8 9 delic Q W E R T Y O P fab A S D F G I L slock C V . N M Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and retained Earnings (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of June 30. (Note: Revenues, expenses, and dividends affect Retained Earnings.) Note: Use a negative sign with your answers, when needed. Cash Accounts Receivable - Accounts Payable. Common Stock Retained Earnings 2 5 6 7 9 10 11 5 $ 5 Transaction Analysis On June 1, a group of bush pilots in Thunder Bay Ontario, Canada, formed the Outpost Fly-In Service, Inc., by selling $50,000 of common stock for cash. The group then leased several amphibious aircraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts. The following transactions occurred during June: June 1 Sold common stock for cash, 553,000 2 Paid June rent for aircraft, dockage, and dockside office, 57,800. 3 Received invoice for the cost of a reception the firm gave to entertain resort owners, 54,600 4 Paid for June advertising in various sports magazines, 53,900, 5 Paid insurance premium for June, $4800, 6 Rendered fly in services for various groups for cash, $25,700. Billed the Canadian Ministry of Natural Resources for tranporting mapping personnel, 55,900, and 7 billed various firms for fly.in services, 516,000 8 Paid $4,500 on accounts payable. 9 Received $16,200 on account from clients, 10 Paid June wages, 519,000 11 Received invoice for the cost of fuel used during June, $6,500. 12 Paid a cash dividend, $500. Support Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and Retained Earnings. (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of June 30. (Note: Revenues, expenses, and dividends affect Retained Earnings.) Note: Use a negative sign with your answers, when needed. Cash Accounts Receivable - Accounts Payable Common Sto + Retained Earnings Juoddns 1 2 3 4 5 6 7 8 9 10 11 12 $ 5 Transaction Analysis On June 1, a group of bush pilots in Thunder Bay, Ontario, Canada, formed the Outpost Fly.In Service, Inc, by selling $50,000 of common stock for cash. The group then leased several amphibious arcraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts. The following transactions occurred during June: June 1 Sold common stock for cash, 553,000 2 Paidune rent for aircraft, dockages, and dockside office 17.00 3 Received more for the cost of a reception the firm gave to entertain resort owners, 54.600 4 Paid for une advertising in various sports marines 2000 5 Paid insurance premium for june 54.800 6 Rendered services for various for cash 25.700 7 Biled the Canadian Mary of Natural Resources for tranporting mapping personnel 55.900 and bed various firms for fin services, 316,000 Paid 4500 on accounts payable 10 Paide wage 515.000 11 Received in for the cost of fuel used durinn, 16.500 12 Pa da casa dividend. 5500 MacBook Air 80 1 A * 1 7 $ 4 3 % 5 & 7 1 0 2 6 8 9 delic Q W E R T Y O P fab A S D F G I L slock C V . N M Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and retained Earnings (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of June 30. (Note: Revenues, expenses, and dividends affect Retained Earnings.) Note: Use a negative sign with your answers, when needed. Cash Accounts Receivable - Accounts Payable. Common Stock Retained Earnings 2 5 6 7 9 10 11 5 $ 5 Transaction Analysis On June 1, a group of bush pilots in Thunder Bay Ontario, Canada, formed the Outpost Fly-In Service, Inc., by selling $50,000 of common stock for cash. The group then leased several amphibious aircraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts. The following transactions occurred during June: June 1 Sold common stock for cash, 553,000 2 Paid June rent for aircraft, dockage, and dockside office, 57,800. 3 Received invoice for the cost of a reception the firm gave to entertain resort owners, 54,600 4 Paid for June advertising in various sports magazines, 53,900, 5 Paid insurance premium for June, $4800, 6 Rendered fly in services for various groups for cash, $25,700. Billed the Canadian Ministry of Natural Resources for tranporting mapping personnel, 55,900, and 7 billed various firms for fly.in services, 516,000 8 Paid $4,500 on accounts payable. 9 Received $16,200 on account from clients, 10 Paid June wages, 519,000 11 Received invoice for the cost of fuel used during June, $6,500. 12 Paid a cash dividend, $500. Support Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and Retained Earnings. (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of June 30. (Note: Revenues, expenses, and dividends affect Retained Earnings.) Note: Use a negative sign with your answers, when needed. Cash Accounts Receivable - Accounts Payable Common Sto + Retained Earnings Juoddns 1 2 3 4 5 6 7 8 9 10 11 12 $ 5

Answer & Explanation Solved by verified expert

See Answer