Question

Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The following transactions occurred in February: February 1 Paid $295 for rent of hangar space in February. February 2 Purchased fuel costing $420 on account for the next flight to Dallas. February 4 Received customer payment of $760 to ship several items to Philadelphia next month. February 7 Flew cargo from Denver to Dallas; the customer paid $890 for the air transport. February 10 Paid $200 for an advertisement in the local paper to run on February 19. February 14 Paid pilot $3,200 in wages for flying in January (recorded as expense in January). February 18 Flew cargo for two customers from Dallas to Albuquerque for $4,400; one customer paid $1,500 cash and the other asked to be billed. February 25 Purchased on account $2,560 in spare parts for the planes. February 27 Declared a $280 cash dividend to be paid in March. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Answer: 0 Prepare journal entries for each transaction: Credit Date Accounts Title Febi Rent expense Debit $295 295 To cash Cto second payment of rent) 420 Feba Fuel expenses 420 760 760 Feby To accounts payable (To record fuel cost) Cash To advance from Customer To record advance for shipment on next month 890 890 Feb 7 cash 200 To cargo revenue To record income from ain transport of cargo Febio Advertising expenses To cash To record advertising expenses] 200 $3200 Tebiet Wages payable . 3200 To cash To record wages to pilot of January paid how

Feb 18 1500 2900 HOO Cash Accountc receivable [4400-1500] To Cargo Sevenue [To record income from transporta bion Of corgo out of which part paid in Cash] Spare parts enpenses To accounts payable Feb25 2560 2560 [To vecord purchase of spare parts] 280 Febar Retained earning 280 To dividend payable TTo record declaration of dividend and payable in march] Note: - The above amount is in dollors o 0-