Hannigan’s Accounting Assingment Help With Solution
In June 2015, Wendy Winger organized a corporation to provide aerial photography services. The company, called Aerial Views, began operations immediately. Transactions during the month of June were as follows:
The corporation issued 60,000 shares of capital stock to Wendy Winger in exchange for $60,000 cash.
Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance.
Paid Woodrow Airport $2,500 to rent office and hangar space for the month.
Billed customers $8,320 for aerial photographs taken during the first half of June.
Paid $5,880 in salaries earned by employees during the first half of June.
Paid Hannigan’s Hangar $1,890 for maintenance and repair services on the company plane.
Collected $4,910 of the amounts billed to customers on June 15.
Billed customers $16,450 for aerial photographs taken during the second half of the month.
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Paid $6,000 in salaries earned by employees during the second half of the month.
Received a $2,510 bill from Peatree Petroleum for aircraft fuel purchased in June. The entire amount is due July 10.
Declared a $2,000 dividend payable on July 15.
Aerial Photography Revenue
a. Analyze the effects that each of these transactions will have on the following six components of the company’s financial statements for the month of June. Organize your answer in tabular form, using the column headings shown. Use I for increase, D for decrease, and NE for no effect. The June 1 transaction is provided for you:
b. Prepare journal entries (including explanations) for each transaction.
c. Post each transaction to the appropriate ledger accounts
d. Prepare a trial balance dated June 30, 2015.
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