In June 2011, Wendy Winger organized a corporation to provide aerial photography services. Thecompany, called Aerial Views, began operations immediately. Transactions during the month ofJune were as follows: June 1 The corporation issued 60,000 shares of capital stock to Wendy Winger in exchangefor $60,000 cash. June 2 Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash downpayment and issued a note payable for the remaining balance. June 4 Paid Woodrow Airport $2,500 to rent office and hangar space for the month. June 15 Billed customers $8,320 for aerial photographs taken during the first half of June. June 15 Paid $5,880 in salaries earned by employees during the first half of June. June 18 Paid Hannigan’s Hangar $1,890 for maintenance and repair services on thecompany plane. June 25 Collected $4,910 of the amounts billed to customers on June 15. June 30 Billed customers $16,450 for aerial photographs taken during the second halfof the month. June 30 Paid $6,000 in salaries earned by employees during the second half of the month. June 30 Received a $2,510 bill from Peatree Petroleum for aircraft fuel purchased in June.The entire amount is due July 10. June 30 Declared a $2,000 dividend payable on July 15.The account titles used by Aerial Views are: Cash Retained= EarningsAccounts Receivable- Dividends Aircraft= Aerial Photography RevenueNotes= Payable Maintenance Expense Accounts Payable= Fuel Expense Dividends Payable= Salaries Expense capital stock =rent expense Solve the problem on MS Excel Use proper formatting for Journal, Ledger and Trial Balance. Give proper titles to Journal, Ledger and Trial Balance

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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In June 2011, Wendy Winger organized a corporation to provide aerial photography services. Thecompany, called Aerial Views, began operations immediately. Transactions during the month ofJune were as follows:

June 1

The corporation issued 60,000 shares of capital stock to Wendy Winger in exchangefor $60,000 cash.

June 2

Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash downpayment and issued a note payable for the remaining balance.

June 4

Paid Woodrow Airport $2,500 to rent office and hangar space for the month.

June 15

Billed customers $8,320 for aerial photographs taken during the first half of June.

June 15

Paid $5,880 in salaries earned by employees during the first half of June.

June 18

Paid Hannigan’s Hangar $1,890 for maintenance and repair services on thecompany plane.

June 25

Collected $4,910 of the amounts billed to customers on June 15.

June 30

Billed customers $16,450 for aerial photographs taken during the second halfof the month.

June 30

Paid $6,000 in salaries earned by employees during the second half of the month.

June 30

Received a $2,510 bill from Peatree Petroleum for aircraft fuel purchased in June.The entire amount is due July 10.

June 30

Declared a $2,000 dividend payable on July 15.The account titles used by Aerial Views are:

Cash Retained= EarningsAccounts Receivable- Dividends Aircraft= Aerial Photography RevenueNotes= Payable Maintenance Expense Accounts Payable= Fuel Expense Dividends Payable= Salaries Expense capital stock =rent expense

Solve the problem on MS Excel

Use proper formatting for Journal, Ledger and Trial Balance.
Give proper titles to Journal, Ledger and Trial Balance.

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