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Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort in northern Manitoba, Canada. Individuals must purchase their tickets at least one month in advance during the busy summer season. The company adjusts its accounts only once each month. Selected balances appearing in the company's June 30 adjusted trial balance appear as follows: Prepaid airport rent Prepaid insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue Other Information 1. The airplane is being depreciated over a 12-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $500 per ticket. 3. Six months' airport rent had been prepaid on May 1. 4. The Prepaid insurance is what remains of a 12-month policy purchased on February 1. 5. Passenger revenue earned in June totaled $60,000. Required: 3. Insurance expense 4. Passenger revenue earned a. Determine the following: 1. The age of the airplane in months. 2. The monthly airport rent expense. 3. The amount paid for the 12-month insurance policy on February 1. Debit $ 12,000 5,250 360,000 b. Prepare the adjusting entries made on June 30 involving the following accounts: 1. Depreciation expense: Airplane 2. Airport rent expense Req A1 Req A2 Credit Complete this question by entering your answers in the tabs below. Req A3 $ 150,000 90,000 The age of the airplane in months. Age of the airplane months Req B

Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort in northern Manitoba, Canada. Individuals must purchase their tickets at least one month in advance during the busy summer season. The company adjusts its accounts only once each month. Selected balances appearing in the company's June 30 adjusted trial balance appear as follows: Prepaid airport rent Prepaid insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue Other Information 1. The airplane is being depreciated over a 12-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $500 per ticket. 3. Six months' airport rent had been prepaid on May 1. 4. The Prepaid insurance is what remains of a 12-month policy purchased on February 1. 5. Passenger revenue earned in June totaled $60,000. Required: 3. Insurance expense 4. Passenger revenue earned a. Determine the following: 1. The age of the airplane in months. 2. The monthly airport rent expense. 3. The amount paid for the 12-month insurance policy on February 1. Debit $ 12,000 5,250 360,000 b. Prepare the adjusting entries made on June 30 involving the following accounts: 1. Depreciation expense: Airplane 2. Airport rent expense Req A1 Req A2 Credit Complete this question by entering your answers in the tabs below. Req A3 $ 150,000 90,000 The age of the airplane in months. Age of the airplane months Req B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort in northern Manitoba, Canada. Individuals must purchase their tickets at least one month in advance during the busy summer season. The company adjusts its accounts only once each month. Selected balances appearing in the company's June 30 adjusted trial balance appear as follows: Prepaid airport rent Prepaid insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue Other Information 1. The airplane is being depreciated over a 12-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $500 per ticket. 3. Six months' airport rent had been prepaid on May 1. 4. The Prepaid insurance is what remains of a 12-month policy purchased on February 1. 5. Passenger revenue earned in June totaled $60,000. Required: 3. Insurance expense 4. Passenger revenue earned a. Determine the following: 1. The age of the airplane in months. 2. The monthly airport rent expense. 3. The amount paid for the 12-month insurance policy on February 1. Debit $ 12,000 5,250 360,000 b. Prepare the adjusting entries made on June 30 involving the following accounts: 1. Depreciation expense: Airplane 2. Airport rent expense Req A1 Req A2 Credit Complete this question by entering your answers in the tabs below. Req A3 $ 150,000 90,000 The age of the airplane in months. Age of the airplane months Req B
Transcribed Image Text:Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort in northern Manitoba, Canada. Individuals must purchase their tickets at least one month in advance during the busy summer season. The company adjusts its accounts only once each month. Selected balances appearing in the company's June 30 adjusted trial balance appear as follows: Prepaid airport rent Prepaid insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue Other Information 1. The airplane is being depreciated over a 12-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $500 per ticket. 3. Six months' airport rent had been prepaid on May 1. 4. The Prepaid insurance is what remains of a 12-month policy purchased on February 1. 5. Passenger revenue earned in June totaled $60,000. Required: 3. Insurance expense 4. Passenger revenue earned a. Determine the following: 1. The age of the airplane in months. 2. The monthly airport rent expense. 3. The amount paid for the 12-month insurance policy on February 1. Debit $ 12,000 5,250 360,000 b. Prepare the adjusting entries made on June 30 involving the following accounts: 1. Depreciation expense: Airplane 2. Airport rent expense Req A1 Req A2 Credit Complete this question by entering your answers in the tabs below. Req A3 $ 150,000 90,000 The age of the airplane in months. Age of the airplane months Req B
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