Summery

During June 1994, Chris Scott Crop Dusting engaged in several key financial activities. The business commenced with an initial investment of $60,000 in cash by the owner. Subsequent transactions included the purchase of a $225,000 aircraft, financed through a cash down payment and a note payable. Operational activities involved paying monthly rent, billing customers for crop-dusting services rendered in two halves of the month, collecting cash from customers for prior services, and incurring and paying employee salaries. Additionally, the business incurred expenses for aircraft maintenance and fuel, the latter on credit. Finally, the owner withdrew $2,000 in cash for personal use, representing a distribution of equity. These transactions collectively illustrate the initial operational and financial flows of the newly established crop-dusting business.

Transaction: June 1 – Scott deposited $60,000 cash in a bank account in the name of the business.

Transaction: June 2 – Purchased a crop-dusting aircraft from Utility Aircraft for $225,000. Made a $45,000 cash down payment and issued a note payable for $180,000.  

Transaction: June 4 – Paid Woodrow Airport $2,500 to rent office and hangar space for the month.

Transaction: June 15 – Billed customers $8,320 for crop-dusting services rendered during the first half of June.

Transaction: June 15 – Paid $5,880 salaries to employees for services rendered during the first half of June.

Transaction: June 18 – Paid Hannigan’s Hangar $1,890 for maintenance and repair services.

Transaction: June 25 – Collected $4,910 of the amounts billed to customers on June 15.

Transaction: June 30 – Billed customers $16,450 for crop-dusting services rendered during the second half of June.

Transaction: June 30 – Billed customers $16,450 for crop-dusting services rendered during the second half of June.

Transaction: June 30 – Received a fuel bill from Henry’s Feed & Fuel for $2,510 of aircraft fuel purchased during June. This amount is due by July 10.

Transaction: June 30 – Scott withdrew $2,000 cash from the business for personal use.

From Journal To Ledger Entries….

kay, let’s create a ledger for each of the accounts affected by the transactions in June 1994 for Chris Scott Crop Dusting. We’ll post each journal entry to the respective ledger accounts, showing the debits, credits, and resulting balances.

1. Cash

Okay, let’s create a ledger for each of the accounts affected by the transactions in June 1994 for Chris Scott Crop Dusting. We’ll post each journal entry to the respective ledger accounts, showing the debits, credits, and resulting balances.

1. Cash

2. Scott, Capital

3. Aircraft

4. Notes Payable

Okay, let’s create a ledger for each of the accounts affected by the transactions in June 1994 for Chris Scott Crop Dusting. We’ll post each journal entry to the respective ledger accounts, showing the debits, credits, and resulting balances.

1. Cash

2. Scott, Capital

3. Aircraft

Export to Sheets

4. Notes Payable

5. Rent Expense

6. Accounts Receivable

7. Service Revenue

8. Salaries Expense

9. Maintenance and Repair Expense

10. Accounts Payable

11. Fuel Expense

12. Scott, Withdrawals

Each of these tables represents the ledger account for the specific account name listed. The “Ref.” column would typically refer to the journal page number (here, we’ve just used “J1” for all entries since they’re from the same set of transactions). The “Balance” column shows the running balance of the account after each transaction.

Till Trial Balance Transactions

Chris Scott Crop Dusting Trial Balance June 30, 1994

You see an amount of $269,170 Which equel, either by Debit or credit side which means all transactions side balance is equel. This is very essential to know that if a one side, say debit show an amount smaller or larger even my 1$ or less that means the there is something inaccuracy in the ledger or trial balance adjustment rather in journal entries.