On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the co
Posted: Tue Jul 05, 2022 11:48 am
On April 1, Jiro Nozomi created a new travel agency, AdventureTravel. The following transactions occurred during the company’sfirst month. April 2 Nozomi invested $33,000 cash and computerequipment worth $25,000 in the company in exchange for its commonstock. April 3 The company rented furnished office space by paying$1,500 cash for the first month’s (April) rent. April 4 The companypurchased $1,400 of office supplies for cash. April 10 The companypaid $2,340 cash for a 12-month insurance policy. Coverage beginson April 11. April 14 The company paid $1,500 cash for two weeks'salaries earned by employees. April 24 The company collected$12,000 cash for commissions revenue. April 28 The company paid$1,500 cash for two weeks' salaries earned by employees. April 29The company paid $250 cash for minor repairs to computer equipment.April 30 The company paid $850 cash for this month's telephonebill. April 30 The company paid $1,540 cash in dividends. Thecompany's chart of accounts follows: 101 Cash 403
Commissions Revenue 106 Accounts Receivable 612 DepreciationExpense—Computer Equipment 124 Office Supplies 622 Salaries Expense128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment640 Rent Expense 168 Accumulated Depreciation—Computer Equipment650 Office Supplies Expense 209 Salaries Payable 684 RepairsExpense 307 Common Stock 688 Telephone Expense 318 RetainedEarnings 901 Income Summary 319 Dividends Use the followinginformation to prepare adjusting entries: Prepaid insurance of $130expired this month. At the end of the month, $700 of officesupplies are still available. This month’s depreciation on computerequipment is $500. Employees earned $530 of unpaid and unrecordedsalaries as of month-end. The company earned $2,000 of commissionsrevenue that is not yet recorded at month-end. Required: 1. &2. Prepare journal entries to record the transactions for April andpost them to ledger accounts in Requirement 6B GL tab. The companyrecords prepaid and unearned items in balance sheet accounts. 3.Using account balances from Requirement 6B GL tab, prepare anunadjusted trial balance as of April 30. 4. Journalize theadjusting entries for the month, and then post to the ledger onRequirement 6B GL tab, using April 30 Adjusted as the date. 5a.Using adjusted account balances from Requirement 6B GL tab, preparean adjusted trial balance as of April 30. 5b. Prepare the incomestatement for the month of April 30. 5c. Prepare the statement ofretained earnings for the month of April 30. 5d. Prepare thebalance sheet at April 30. 6a. Prepare journal entries to close thetemporary accounts and then post to Requirement 6B GL tab, usingApril 30 Close as the date. 6b. Post the journal entries to theledger. 7. Prepare a post-closing trial balance.
Commissions Revenue 106 Accounts Receivable 612 DepreciationExpense—Computer Equipment 124 Office Supplies 622 Salaries Expense128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment640 Rent Expense 168 Accumulated Depreciation—Computer Equipment650 Office Supplies Expense 209 Salaries Payable 684 RepairsExpense 307 Common Stock 688 Telephone Expense 318 RetainedEarnings 901 Income Summary 319 Dividends Use the followinginformation to prepare adjusting entries: Prepaid insurance of $130expired this month. At the end of the month, $700 of officesupplies are still available. This month’s depreciation on computerequipment is $500. Employees earned $530 of unpaid and unrecordedsalaries as of month-end. The company earned $2,000 of commissionsrevenue that is not yet recorded at month-end. Required: 1. &2. Prepare journal entries to record the transactions for April andpost them to ledger accounts in Requirement 6B GL tab. The companyrecords prepaid and unearned items in balance sheet accounts. 3.Using account balances from Requirement 6B GL tab, prepare anunadjusted trial balance as of April 30. 4. Journalize theadjusting entries for the month, and then post to the ledger onRequirement 6B GL tab, using April 30 Adjusted as the date. 5a.Using adjusted account balances from Requirement 6B GL tab, preparean adjusted trial balance as of April 30. 5b. Prepare the incomestatement for the month of April 30. 5c. Prepare the statement ofretained earnings for the month of April 30. 5d. Prepare thebalance sheet at April 30. 6a. Prepare journal entries to close thetemporary accounts and then post to Requirement 6B GL tab, usingApril 30 Close as the date. 6b. Post the journal entries to theledger. 7. Prepare a post-closing trial balance.