Question

Rowland & Sons Air Transport Service Ltd. has been in operation for three years. The following transactions occurred in February 2017:

Feb.	1		Paid $270 for rent of hangar space in February.
Feb.	4		Received customer payment of $870 to ship several items to Victoria next month.
Feb.	7		Flew cargo from Winnipeg to Regina; the customer paid in full ($970 cash).
Feb.	10		Paid pilot $1,900 in wages for flying in February.
Feb.	14		Paid $170 for an advertisement run in the local paper on February 14.
Feb.	18		Flew cargo for two customers from Edmonton to Lake Louise for $2,750; one customer paid $850 cash and the other asked to be billed $1,900.
Feb.	25		Purchased on account $1,420 in spare parts for the planes.

Required:

1-a. Prepare journal entries for each transaction.

Answer 1

Credit Date Feb. 01 Debit 270 270 Feb. 04 870 870 Feb. 07 970 970 Feb. 10 1,900 General Journal Rent Expense Cash Cash Unearned Revenue Cash Transport Revenue Wages Expense Cash Advertising Expense Cash Cash Accounts Receivable Transport Revenue Parts Supplies Accounts Payable 1,900 Feb. 14 170 170 Feb. 18 850 1,900 2,750 Feb. 25 1,420 1,420