Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 59

River Rat, Inc., operates a ferry that takes travelers across the Wild River.he company adjusts its accounts at the end of each month.elected account balances appearing in the April 30 adjusted trial balance are as follows:

Other Data
1.he ferry is being depreciated over an 12-year estimated useful life.
2.he unearned passenger revenue represents tickets good for future rides sold to a resort hotel for $5 per ticket on April 1.uring April, 150 of the tickets were used.
3.ix months' rent had been prepaid on April 1.
4.he unexpired insurance is a 12-month fire insurance policy purchased on March 1.
Instructions
a.etermine the following:
1.he age of the ferry in months.
2.ow many $5 tickets for future rides were sold to the resort hotel on April 1.
3.he monthly rent expense.
4.he original cost of the 12-month fire insurance policy.
b.repare the adjusting entries that were made on April 30.