Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort in northern Manitoba, Canada. Individuals must purchase their tickets at least one month in advance during the busy summer season. The company adjusts its accounts only once each month. Selected balances appearing in the company's June 30 adjusted trial balance appear as follows. Credit Prepaid airport rent Unexpired insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue S Debit 9,000 4,200 288,000 $ 80,000 75,000 Other Information 1. The airplane is being depreciated over a 15-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $300 per ticket.
Gunflint Adventures operates an airplane service that takes fishing parties to a remote lake resort in northern Manitoba, Canada. Individuals must purchase their tickets at least one month in advance during the busy summer season. The company adjusts its accounts only once each month. Selected balances appearing in the company's June 30 adjusted trial balance appear as follows. Credit Prepaid airport rent Unexpired insurance Airplane Accumulated depreciation: airplane Unearned passenger revenue S Debit 9,000 4,200 288,000 $ 80,000 75,000 Other Information 1. The airplane is being depreciated over a 15-year life with no residual value. 2. Unearned passenger revenue represents advance ticket sales for bookings in July and August at $300 per ticket.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...
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