Question 1: O’Connell’s Air Service operates several small airplanes providing passenger and freight service to small towns. Oil fields fishing lodges and other remote locations in Alaska. The company adjusts and closes its accounts at the end of each month. At April 30, the following trial balance was prepared from the ledger. O’CONNELL’S AIR SERVICE Trial Balance April 30,19__ Cash $22,950 Accounts receivable 25,800 Prepaid rent 8,100 Unexpired Insurance 37,900 Airplanes 845,000 Accumulated depreciation: Airplane $231,780 Notes payable 423,040 Unearned passenger revenue 181,680 Maggle O’Connell, Capital 171,850 Maggle O’Connell, Drawing 7,750 Freight revenue 54,250 Fuel expense 45,600 Salaries expense 60,800 Maintenance expense 8,700 $1,062,600 $1,062,600 Other Data: One of O’Connell’s regular customers is Yukon Oil Company. The airline keeps track of the number of trips carrying freight for the oil company and sends a bill shortly after month end. No entry has yet been made in the airline’s accounting records to record $11,750 freight revenue earned in April form Yukon Oil Company. Three months’ rent $8,100 had been prepaid on April 1. On January 1, a 12-month insurance policy had been purchased for $49,200. O’Connell’s depreciates its airplanes over a period of 15 years (180 months). Accrued interest on notes payable amounts to $4,500 at April 30 and has not yet been recorded. The amount shown as unearned passenger revenue represents the price of tickets sold to customers In advance of flights. During April, $94,750 of this amount was earned by the airline. Salaries earned by airline employees but not yet recorded or paid amount to $1,625 at April 30. Required: Prepare a 10-column work sheet using the trial balance and adjusting data provided. Include at the

Question 1: O’Connell’s Air Service operates several small airplanes providing passenger and freight service to small towns. Oil fields fishing lodges and other remote locations in Alaska. The company adjusts and closes its accounts at the end of each month. At April 30, the following trial balance was prepared from the ledger. O’CONNELL’S AIR SERVICE Trial Balance April 30,19__ Cash $22,950 Accounts receivable 25,800 Prepaid rent 8,100 Unexpired Insurance 37,900 Airplanes 845,000 Accumulated depreciation: Airplane $231,780 Notes payable 423,040 Unearned passenger revenue 181,680 Maggle O’Connell, Capital 171,850 Maggle O’Connell, Drawing 7,750 Freight revenue 54,250 Fuel expense 45,600 Salaries expense 60,800 Maintenance expense 8,700 $1,062,600 $1,062,600 Other Data: One of O’Connell’s regular customers is Yukon Oil Company. The airline keeps track of the number of trips carrying freight for the oil company and sends a bill shortly after month end. No entry has yet been made in the airline’s accounting records to record $11,750 freight revenue earned in April form Yukon Oil Company. Three months’ rent $8,100 had been prepaid on April 1. On January 1, a 12-month insurance policy had been purchased for $49,200. O’Connell’s depreciates its airplanes over a period of 15 years (180 months). Accrued interest on notes payable amounts to $4,500 at April 30 and has not yet been recorded. The amount shown as unearned passenger revenue represents the price of tickets sold to customers In advance of flights. During April, $94,750 of this amount was earned by the airline. Salaries earned by airline employees but not yet recorded or paid amount to $1,625 at April 30. Required: Prepare a 10-column work sheet using the trial balance and adjusting data provided. Include at the

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Description: Question 1: O’Connell’s Air Service operates several small airplanes providing passenger and freight service to small towns. Oil fields fishing lodges and other remote locations in Alaska. The company adjusts and closes its accounts at the end of eac

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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Question 1:

O’Connell’s Air Service operates several small airplanes providing passenger and freight service to small towns. Oil fields fishing lodges and other remote locations in Alaska. The company adjusts and closes its accounts at the end of each month. At April 30, the following trial balance was prepared from the ledger.

O’CONNELL’S AIR SERVICE Trial Balance April 30,19__
Cash	$22,950
Accounts receivable	25,800
Prepaid rent	8,100
Unexpired Insurance	37,900
Airplanes	845,000
Accumulated depreciation: Airplane		$231,780
Notes payable		423,040
Unearned passenger revenue		181,680
Maggle O’Connell, Capital		171,850
Maggle O’Connell, Drawing	7,750
Freight revenue		54,250
Fuel expense	45,600
Salaries expense	60,800
Maintenance expense	8,700
	$1,062,600	$1,062,600

Other Data:

One of O’Connell’s regular customers is Yukon Oil Company. The airline keeps track of the number of

trips carrying freight for the oil company and sends a bill shortly after month end. No entry has yet

been made in the airline’s accounting records to record $11,750 freight revenue earned in April

form Yukon Oil Company.

Three months’ rent $8,100 had been prepaid on April 1.

On January 1, a 12-month insurance policy had been purchased for $49,200.

O’Connell’s depreciates its airplanes over a period of 15 years (180 months).

Accrued interest on notes payable amounts to $4,500 at April 30 and has not yet been recorded.
The amount shown as unearned passenger revenue represents the price of tickets sold to customers

In advance of flights. During April, $94,750 of this amount was earned by the airline.

Salaries earned by airline employees but not yet recorded or paid amount to $1,625 at April 30.

Required: Prepare a 10-column work sheet using the trial balance and adjusting data provided. Include at the

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