Vulcan Flyovers offers scenic overflights of Mount Saint Helens. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Flights (9) Revenue ($360.009) Expenses: Wages and salaries ($3,200 + $85.009) Fuel ($30.009) Airport fees ($880 + $30.009) Aircraft depreciation ($9.00q) Office expenses ($240 + $1.009) Total expenses Net operating income Actual Results Flexible Budget Planning Budget 61 61 59 $ 16,400 $ 21,960 $ 21,240 8,355 8,385 8,215 2,000 1,830 1,770 2,590 2,710 2,650 549 549 531 469 13,963 301 299 13,775 13,465 $ 2,437 $ 8,185 $ 7,775 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane at a discount. Required: 1. Prepare a flexible budget performance report for July. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flights Actual Results Revenue and Spending Flexible Variances Budget Activity Variances Planning Budget 61 61 59 $ 16,400 $ 5,150 U $ 21,960 $ 700 F $ 21,240 Revenue Expenses: Wages and salaries 8,355 8,385 8,215 Fuel 2,000 1,830 1,770 Airport fees 2,590 2,710 2,650 Aircraft depreciation 549 549 531 Office expenses 469 301 299 Total expenses 13,963 13,775 13,465 Net operating income $ 2,437 $ 8,185 $ 7,775
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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