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. Credit Prepaid airport rent Unexpired insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue S Debit 9,000 4,200 288,000 $ 80,000 75,000 Other Information 1. The airplane is being depreciated over a 15-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $300 per ticket.

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. Credit Prepaid airport rent Unexpired insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue S Debit 9,000 4,200 288,000 $ 80,000 75,000 Other Information 1. The airplane is being depreciated over a 15-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $300 per ticket.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...

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Gunflint adventures operate an airplane service that take fishing parties to a remote lake season lake resort in northemManitoba, Canada. Individuals must purchase their tickest at least one month in advance during the busy summer season. The company adjusts its accounts only one each month. Selected balances appearing in the company's June 30 adjusted trial balance appear as follows. DEbit Credit Prepaid airport rent.................................................... $9,000 Unexpired insurance................................................... 4,200 Airplane........................................................................288,000 Accumulated depreciations airplane.......................... $80,000 Uneamed passenger revenue..................................... 75,000 Other information 1. The airplane is being depreciated over a 15 year life with no…
ABC Adventures operates an aircraft service that takes fishing parties to a remote lake resort. 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 May 30 adjusted trial balance appear as follows:Debit CreditPrepaid aircraft rent 72,000 Unexpired insurance 35,000 Aircraft 840,000 Accumulated depreciation: Aircraft 360,000Unearned passenger revenue 90,000 Other Information:⦁ The aircraft is being depreciated over a 15-year life with no residual value. ⦁ Unearned passenger revenue represents advance ticket sales for bookings in May and August at 300 per ticket.⦁ Six months’ aircraft rent had been prepaid on May 1. ⦁ The unexpired insurance is what remains of a 12-month policy purchased on February 1. ⦁ Passenger revenue earned in May totaled 75,000. Instructions: a. Determine the following: 1. The age of the aircraft in months. 2. The…
ABC Adventures operates an aircraft service that takes fishing parties to a remote lake resort. Individuals must purchase their tickets at least one month in advance during the busy summeI season. The company adjusts its accounts only once each month Selected balances appearing in the company's May 30 adjusted trial balance appear as follows: Debit Credit Prepaid aircraft rent Unexpired insurance Aircraft 72,000 35,000 840,000 Accumulated depreciation: Aircraft 360,000 90,000 Unearned passenger revenue Other Information: 1. The aircraft is being depreciated over a 15-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in May and August at 300 3. Six months' aircraft rent had been prepaid on May 1. 4. The unexpired insurance is what remains of a 12-month policy purchased on February 1. 5. Passenger revenue earned in May totaled 75,000. per ticket. Instructions: a. Determine the following: 1. The age of the aircraft in months. 2.…
ABC Adventures operates an aircraft service that takes fishing parties to a remote lake resort. 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 May 30 adjusted trial balance appear as follows: Debit Credit Prepaid aircraft rent 72,000 Unexpired insurance 35,000 Aircraft 840,000 Accumulated depreciation: Aircraft 360,000 Unearned passenger revenue 90,000 Other Information: The aircraft is being depreciated over a 15-year life with no residual value. Unearned passenger revenue represents advance ticket sales for bookings in May and August at 300 per ticket. Six months’ aircraft rent had been prepaid on May 1. The unexpired insurance is what remains of a 12-month policy purchased on February 1. Passenger revenue earned in May totaled 75,000. Instructions: Determine…
ABC Adventures operates an aircraft service that takes fishing parties to a remote lake resort. 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 May 30 adjusted trial balance appear as follows: Debit Credit Prepaid aircraft rent 72,000 Unexpired insurance 35,000 Aircraft 840,000 Accumulated depreciation: Aircraft 360,000 Unearned passenger revenue 90,000 Other Information: 1. The aircraft is being depreciated over a 15-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in May and August at 300 per ticket. 3. Six months’ aircraft rent had been prepaid on May 1. 4. The unexpired insurance is what remains of a 12-month policy purchased on February 1. 5. Passenger revenue earned in May totaled 75,000. Prepare the adjusting entries made on May 30 involving the following accounts: 1.…
Party Warehouse Inc. rents a wide variety of products (e.g., tables, chairs, tents) for special events. Upon rental, Party Warehouse requires a deposit which is forfeited if the equipment is not returned at the end of the rental period. Deposits charged are twice the cost of the equipment, and Party Warehouse keeps the equipment in its accounting records until deposits are forfeited. On April 5, a customer rented various products for an event to be held on April 8, and Party Warehouse collected a $10,000 deposit. The products were returned on April 10. Required: 1. Prepare the entries to record the receipt of the deposit and refund of the deposit at the end of the rental period. 2. Assume that the customer only returns 90% of the containers on April 10. Prepare the entries to record the forfeiture of the deposit.
Enchanted Forest, a large campground in South Carolina, adjusts its accounts monthly. Mostguests of the campground pay at the time they check out, and the amounts collected are creditedto Camper Revenue. The following information is available as a source for preparing the adjustingentries at December 31:1. Enchanted Forest invests some of its excess cash in certificates of deposit (CDs) with its localbank. Accrued interest revenue on its CDs at December 31 is $400. None of the interest hasyet been received. (Debit Interest Receivable.)2. A six-month bank loan in the amount of $12,000 had been obtained on September 1.Interest is to be computed at an annual rate of 8.5 percent and is payable when the loanbecomes due.3. Depreciation on buildings owned by the campground is based on a 25-year life. The originalcost of the buildings was $600,000. The Accumulated Depreciation: Buildings account has a credit balance of $310,000 at December 31, prior to the adjusting entry process. The…
Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer purchases one year of flood insurance in advance on March 1, paying $27,600 ($2,300/month). Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the year-end adjusted balances of Prepaid Insurance and Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $0).
Required: a. For each of the above numbered paragraphs, prepare the necessary adjusting entry. b. Using these descriptions, identify the type of each adjusting entry. c. Indicate the effects that each of the adjustments in part a will have on the following six total amounts in the campground's financial statements for the month of December. Select the letters I for increase, D for decrease, and NE for no effect. Adjusting entry 1 is provided as an example. d. What is the amount of Interest expense recognized for the entire current year on the $12,000 bank loan obtained September 1? e. Compute the book value of the campground's buildings to be reported in the current year's December 31 balance sheet. (Refer to paragraph 3.)
WaterWorld Inc. operates an aquarium and water park in Orlando, Florida. In addition to daily admission tickets, WaterWorld offers two other ticket options. First, it offers an annual pass for 600 that allows unlimited access to the aquarium and theme park for one year from the date of purchase. In addition, it offers a Summer Fun Pass that allows unlimited access to the waterpark for June, July, and August for 450. Both pass options require full payment at the time of purchase. On April 1, 2019, WaterWorld entered into a contract with a customer to purchase an annual pass. On that same date, it entered into another contract with a customer to purchase a Summer Fun Pass. Required: 1. Prepare WaterWorlds journal entries in 2019 related to the annual pass. 2. Prepare WaterWorlds journal entries related to the Summer Fun Pass.
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Suppose Casey Title Company normally charges $500 for services related to selling a house. As part of a summer special, Casey offers customers a trade discount of 15%. On July 9, Linda Holmes uses the services of Casey and pays cash equal to the discounted price. Record the revenue recognized by Casey on July 9. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)