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Business Transaction Analysis On June 1, a group of bush pilots in Thunder Bay, Ontario, Canada, formed the Thunder Fly-In Service, Inc., by selling $80,000 of common stock for cash. The group then leased several amphibious aircraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts. The following transactions occurred during June: Sold common stock for cash, $80,000. 2 Paid June rent for aircraft, dockage, and dockside office, $4,250 3 Received invoice for the cost of a reception the firm gave to entertain resort owners, $1.600 4 Paid for June advertising in various sports magarines, $800 5 Paid Insurance premium for june, $1,800 Rendered fly-in services for various groups for cash, $26,500. 7 Billed the Canadian Ministry of Natural Resources for transporting mapping personnel $1,900, and billed various firms for fly-in services, $14,000 Paid $1,500 on accounts payable, 9 Received $13,200 on account from clients 10 Paid june wages, $21,000. 11 Received invoice for the cost of fuel used during June, $3,500. 12 Paid a cash dividend, $4,000... Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and Retained Earnings (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of june 30. (Note: Revenues, expenses, and dividends affect Retained Earnings.) Note: Use a negative sign with your answers, when needed. Cash Accounts Receivable Accounts Payable Common Stock Retained Earnings 0 0 0 0 0 0 0 0 0 0 0 0 5 0 0 0 6 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10 0 0 0 O 11 0. 0 D 0 0 0 0 S 0 Businesse Transaction Analysis On June 1, a group of bush pilots in Thunder Bay, Ontario, Canada, formed the Thunder Ry-In Service, Inc. by selling $80,000 of common stock for cash. The group then leased several amphibious aircraft and docking facilities, equipping them to transport campers and hunters to outpost camps owned by various resorts. The following transactions occurred during June: 1 Sold common stock for cash, $80,000 2 Paid June rent for aircraft, dockage, and dockside office, $4,250 3 Received invoice for the cost of a reception the firm gave to entertain resort owners. $1.600 4 Paid for June advertising in various sports magarines, $800 5 Paid insurance premium for June, $1,800 Rendered fly-in services for various groups for cash, $26,500 7 Bled the Canadian Ministry of Natural Resources for transporting mapping personnel, $1,900, and billed various firms for fly-in services, $14,000 Paid $1,500 on accounts payable, 9 Received $13,200 on account from clients 10 Paid june wages, 121,000 11 Received voice for the cost of fuel used during June, $3,500. 12 Paid a cash dividend, $4,000 Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and Retained Earnings (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of June 30. (Note: Revenues, expenses, and dividends affect Retained Earnings) Note: Use a negative sign with your answers, when needed. Cash Accounts Receivable Accounts Payable Common Stock Retained Earnings 0 0 0 0 0 0 4 0 0 0 5 D 0 0 0 G O 0 0 0 0 0 0 0 0 0 0 0 0 0 10 D 0 0 0 0 0 0 0 9 12 0 10 2 Paid june rent for aircraft, dockage, and dockside office, $4,250 3 Received invoice for the cost of a reception the firm gave to entertain resort owners, $1,600. 4 Paid for June advertising in various sports magazines, $800. 5 Paid insurance premium for June, $1,800, 6 Rendered fly-in services for various groups for cash, $26,500. 7 Billed the Canadian Ministry of Natural Resources for transporting mapping personnel, $1,900, and billed various firms for fly-in services, $14,000 8 Paid $1,500 on accounts payable. 9 Received $13,200 on account from clients. 10 Paid june wages, $21,000 11 Received invoice for the cost of fuel used during June, $3,500. 12 Paid a cash dividend, $4,000 Required (a) Set up an accounting equation in columnar form with the following column headings: Cash, Accounts Receivable, Accounts Payable, Common Stock, and Retained Earnings. (b) Show how the June transactions affect the items in the accounting equation, and total all columns to show that assets equal liabilities plus stockholders' equity as of June 30. (Note Revenues, expenses, and dividends affect Retained Earnings.)) Note: Use a negative sign with your answers, when needed. Cash Accounts Receivable Accounts Payable Common Stock Retained Earnings 1 0 0 2 0 0 3 0 0 0 4 0 0 5 O 0 0 9 0 0 0 7 0 0 0 0 0 0 0 0 9 0 0 0 0 0 10 0 0 0 0 0 0 0 0 0 12 D 0 0 0 $ 0 S 0 0 $ 0 0 3 S Check

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