P1-3A On May 1, Jeff Wilkins started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2010, and the revenues and expenses for the month of May. Cash Accounts Receivable Equipment Lesson Revenue Advertising Expense $ 5,600 7,200 64,000 7,500 500 Notes Payable Rent Expense Repair Expense Fuel Expense Insurance Expense Accounts Payable $30,000 1,200 400 2,500 400 800 Jeff Wilkins made no additional investment in May, but he withdrew $1,500 in cash for personal use. Instructions (a) Prepare an income statement and owner's equity statement for the month of May and a bal- ance sheet at May 31. (b) Prepare an income statement and owner's equity statement for May assuming the following data are not included above: (1) $900 of revenue was earned and billed but not collected at May 31, and (2) $1,500 of fuel expense was incurred but not paid.

P1-3A On May 1, Jeff Wilkins started Skyline Flying School, a company that provides flying lessons, by investing $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2010, and the revenues and expenses for the month of May. Cash Accounts Receivable Equipment Lesson Revenue Advertising Expense $ 5,600 7,200 64,000 7,500 500 Notes Payable Rent Expense Repair Expense Fuel Expense Insurance Expense Accounts Payable $30,000 1,200 400 2,500 400 800 Jeff Wilkins made no additional investment in May, but he withdrew $1,500 in cash for personal use. Instructions (a) Prepare an income statement and owner's equity statement for the month of May and a bal- ance sheet at May 31. (b) Prepare an income statement and owner's equity statement for May assuming the following data are not included above: (1) $900 of revenue was earned and billed but not collected at May 31, and (2) $1,500 of fuel expense was incurred but not paid.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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