Reco r ding Journal Entries

 

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

 

February 1 Paid $225 for rent of hangar space in February.

February 2 Purchased fuel costing $490 on account for the next flight to Dallas.

February 4 Received customer payment of $820 to ship several items to Philadelphia next month. February 7 Flew cargo from Denver to Dallas; the customer paid $910 for the air transport. February 10 Paid pilot $1,300 in wages for flying in January.

February 14 Paid $75 for an advertisement in the local paper to run on February 19.

February 18 Flew cargo for two customers from Dallas to Albuquerque for $1,800; one customer paid $600 cash and the other asked to be billed.

February 25 Purchased on account $1,550 in spare parts for the planes. February 27 Declared a $250 cash dividend to be paid in March.

 

 

 

 

Required:

Prepare journal entries for each transaction. Be sure to categorize each account as an asset (A), liabil- ity (L), stockholders’ equity (SE), revenue (R), or expense (E).

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