Journal Entries T-Accounts

1 Cash (A) (inc) 50,000

Capital Stock (OE) (inc) 50,000
Assets = Liabilities + Owner's Equity
2 Retained Earnings (OE) (dec) 4,800
Cash (A) (dec) 4,800 + - - + - +
Cash (A) Accounts Payable (L) Retained Earnings (OE)
3 Retained Earnings (OE) (dec) 1,600 BB - 8 1,500 - BB - BB
Accounts Payable (L) (inc) 1,600 1 50,000 4,800 2 1,600 3 Rent 2 4,800 22,700 6 Flight services revenue
6 22,700 900 4 3,500 11 Event Costs 3 1,600 15,900 7 Flight services Revenue
4 Retained Earnings (OE) (dec) 900 9 13,200 1,800 5 3,600 EB Advertising 4 900
Cash (A) (dec) 900 1,500 8 Wage Expense 10 16,000
16,000 10 Interest Payable (L) Fuel Expense 11 3,500
5 Prepaid Insurance (A) (inc) 1,800 3,000 12 - BB Dividends 12 3,000
Cash (A) (dec) 1,800

6 Cash (A) (inc) 22,700

Retained Earnings (OE) (inc) 22,700

7 Accounts Receivable (A) (inc) 15,900

Retained Earnings (OE) (inc) 15,900 Change in cash: 57,900 EB 57,900 8,800 EB EB-BB+Dividends 8,800
- EB 8,800
8 Accounts Payable (L) (dec) 1,500 8,800
Cash (A) (dec) 1,500 Accounts Receivable (A) Taxes Payable (L) Capital Stock (OE)
BB - BB - BB
9 Cash (A) (inc) 13,200 7 15,900 13,200 9 50,000 1
Accounts Receivable (A) (dec) 13,200
EB 2,700
10 Retained Earnings (OE) (dec) 16,000
Cash (A) (dec) 16,000 Prepaid Insurance (A)
BB -
11 Retained Earnings (OE) (dec) 3,500 5 1,800
Accounts Payable (L) (inc) 3,500 - EB 50,000 EB

12 Retained Earnings (OE) (dec) 3,000 Loan Payable (L)

Cash (A) (dec) 3,000 - BB
EB 1,800

PP&E (A)
BB

- EB

EB - Wages Payable (L)

BB
Inventory (A)
BB -

EB - - EB

Investment (A)
BB -

EB -