In June 2021, Wanda Fonda organized a corporation to provide drone photography services. The company, called Drone Queen Inc., began operations immediately. Transactions during the month of June were as follows: June 1 The corporation issued 60,000 shares of capital stock to Wanda Fonda in exchange for $60,000 cash. Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance. June 2 June 4 Paid Piarco Airport $2,500 to rent office and hangar space for the month. June 15 Billed customers $8,320 for aerial photographs taken during the first half of June. June 15 Paid $5,880 in salaries earned by employees during the first half of June. June 18 Paid Henry's Hangar $1,890 for maintenance and repair services on the company plane. June 25 Collected $4,910 of the amounts billed to customers on June 15. June 30 Billed customers $16,450 for aerial photographs taken during the second half of the month. June 30 Paid $6,000 in salaries earned by employees during the second half of the month. June 30 Received a $2,510 bill from National Petroleum for aircraft fuel purchased in June. The entire amount is due July 10. June 30 Declared a $2,000 dividend payable on July 15. The account titles used by Drone Queen are: Cash Retained Earnings Accounts Receivable Dividends Aircraft Aerial Photography Revenue Notes Payable Accounts Payable Fuel Expense Dividends Payable Salaries Expense Capital Stock Maintenance Expense Rent Expense
In June 2021, Wanda Fonda organized a corporation to provide drone photography services. The company, called Drone Queen Inc., began operations immediately. Transactions during the month of June were as follows: June 1 The corporation issued 60,000 shares of capital stock to Wanda Fonda in exchange for $60,000 cash. Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash down payment and issued a note payable for the remaining balance. June 2 June 4 Paid Piarco Airport $2,500 to rent office and hangar space for the month. June 15 Billed customers $8,320 for aerial photographs taken during the first half of June. June 15 Paid $5,880 in salaries earned by employees during the first half of June. June 18 Paid Henry's Hangar $1,890 for maintenance and repair services on the company plane. June 25 Collected $4,910 of the amounts billed to customers on June 15. June 30 Billed customers $16,450 for aerial photographs taken during the second half of the month. June 30 Paid $6,000 in salaries earned by employees during the second half of the month. June 30 Received a $2,510 bill from National Petroleum for aircraft fuel purchased in June. The entire amount is due July 10. June 30 Declared a $2,000 dividend payable on July 15. The account titles used by Drone Queen are: Cash Retained Earnings Accounts Receivable Dividends Aircraft Aerial Photography Revenue Notes Payable Accounts Payable Fuel Expense Dividends Payable Salaries Expense Capital Stock Maintenance Expense Rent Expense
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 3DQ
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Transcribed Image Text:In June 2021, Wanda Fonda organized a corporation to provide drone photography services. The
company, called Drone Queen Inc., began operations immediately. Transactions during the month of
June were as follows:
June 1
The corporation issued 60,000 shares of capital stock to Wanda Fonda in exchange for
$60,000 cash.
Purchased a plane from Utility Aircraft for $220,000. Made a $40,000 cash down
payment and issued a note payable for the remaining balance.
June 2
June 4
Paid Piarco Airport $2,500 to rent office and hangar space for the month.
June 15 Billed customers $8,320 for aerial photographs taken during the first half of June.
June 15
Paid $5,880 in salaries earned by employees during the first half of June.
Paid Henry's Hangar $1,890 for maintenance and repair services on the company
plane.
June 18
June 25 Collected $4,910 of the amounts billed to customers on June 15.
June 30
Billed customers $16,450 for aerial photographs taken during the second half of the
month.
June 30 Paid $6,000 in salaries earned by employees during the second half of the month.
June 30 Received a $2,510 bill from National Petroleum for aircraft fuel purchased in June. The
entire amount is due July 10.
June 30 Declared a $2,000 dividend payable on July 15.
The account titles used by Drone Queen are:
Cash
Retained Earnings
Accounts Receivable Dividends
Aircraft
Aerial Photography Revenue
Notes Payable
Maintenance Expense
Accounts Payable
Fuel Expense
Dividends Payable Salaries Expense
Capital Stock
Rent Expense
a. Prepare journal entries (including explanations) for each transaction.
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