Question

Having a hard time answering the question with the red x. all the other parts to the problem have been solved. Thank you for the help

Problem 3-5A Applying the accounting cycle LO P1, P2, P3, P4, P5, P6, P7, P8 On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. 3 The company purchased $1,000 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,600 cash for two weeks' salaries earned by employees. 24 The company collected $8,000 cash for commissions earned. 28 The company paid $1,600 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer. 30 The company paid $750 cash for this month's telephone bill. 30 The company paid $1,500 cash in dividends. The company's chart of accounts follows. 101 Cash 106 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 405 Commissions Earned 612 Depreciation Expense-Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary

Answer 1

General Ledger Accounts 183 184 185 Cash Debit Credit Accounts Receivable Date Debit April 30 Adj. Credit Balance 1,750 30,000 1,750 186 187 188 189 1,800 1,000 2,400 1,600 190 Date 1-Apr 2-Apr 3-Apr 10-Apr 14-Apr 24-Apr 28-Apr 29-Apr 30-Apr 30-Apr 191 Balance 30,000 28,200 27,200 24,800 23,200 31,200 29,600 29,250 28,500 27,000 8,000 192 193 1,600 350 194 195 196 750 1,500 197 198 Office Supplies Debit Prepaid Insurance Debit Credit Date Credit Balance 1,000 1,000 2,400 199 Date 200 3-Apr 201 April 30 Adj. 202 10-Apr April 30 Adj. Balance 2,400 2,267 400 133 203 204 Computer Equipment Debit Credit 205 206 207 Date 1-Apr Balance 20,000 Accumulated Depreciation - Computer Equipment Date Debit Credit April 30 Adj. 500 Balance 500 20,000

210 Salaries Payable Debit Credit Balance Common Stock Date 1-Apr 211 Date 212 April 30 Adj. Debit Credit 50,000 420 Balance 50,000 420 213 Retained Earnings Debit Credit Debit Credit Credit 2,197 Balance 2,197 Dividends Date 30-Apr April 30 Close Balance 1,500 1,500 1,500 1,500 214 215 216 217 Date 218 April 30 Close 219 April 30 Close 220 221 222 223 Date 24-Apr 225 April 30 Adj. 226 April 30 Close Commissions earned Debit Credit 224 Credit 8,000 1,750 Balance 8,000 9,750 Depreciation expense - Computer Equipment Date Debit April 30 Adj. 500 April 30 Close Balance 500 0 500 9,750 227 228 Salaries expense Debit Insurance expense Debit 229 Credit Credit Balance 133 Date 230 14-Apr 231 28-Apr 232 April 30 Adj. 233 April 30 Close 133 Date April 30 Adj. April 30 Close 1,600 1,600 420 Balance 1,600 3,200 3,620 133 3,620

Rent expense Debit Credit Credit Balance 1,800 0 Office Supplies expense Date Debit April 30 Adj. April 30 Close Balance 400 1,800 400 1,800 400 0 Repairs expense Debit Credit Balance Credit Telephone expense Date Debit 30-Apr April 30 Close Balance 750 350 350 234 235 Date 236 2-Apr 237 April 30 Close 238 239 240 241 Date 242 29-Apr 243 April 30 Close 244 245 246 247 Date 248 April 30 Close 249 April 30 Close 250 April 30 Close 251 750 350 750 Income Summary Debit Credit 9,750 Balance 9,750 2,197 7,553 2,197

Credit Credit Debit 27,000 1,000 2,400 20,000 Adventure Travel Unadjusted Trial Balance For the month ended April 30 Particulars Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation - Computer Equipment Salaries Payable Common Stock Retained Earnings Dividends Commissions earned Depreciation Expense - Computer Equipment Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Total Adventure Travel Adjusted Trial Balance For the month ended April 30 Particulars Debit Cash 27,000 Accounts Receivable 1,750 Office Supplies 600 Prepaid Insurance 2,267 Computer Equipment 20,000 Accumulated Depreciation - Computer Equipment Salaries Payable Common Stock Retained Earnings Dividends 1,500 Commissions earned Depreciation Expense - Computer Equipment 500 Salaries Expense 3,620 Insurance Expense 133 Rent Expense 1,800 Office Supplies Expense 400 Repairs Expense 350 Telephone Expense 750 Total 60670 500 420 50,000 50,000 1,500 8,000 9,750 3,200 1,800 350 750 58000 58000 6 0670

116 117 118 119 9,750 120 Adventure Travel Income Statement For the month ended April 30 Revenues Commissions earned Less Expenses Depreciation Expense - Computer Equipment Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Total Expenses Net Income 123 500 3,620 133 1,800 400 350 750 128 7,553 2,197 130 131 132 Adventure Travel Statement of Retained Earnings For the month ended April 30 133 134 135 136 137 138 Retained Earnings ,April 1 Add Net Income Subtotal Less Dividends Retained Earnings , April 30 2,197 2,197 (1,500) 697

140 141 142 143 144 Adventure Travel Balance Sheet April 30 Assets Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation - Computer Equipment Total Assets 27,000 1,750 600 2,267 147 148 20,000 500 19500 51117 152 Liabilities & Equity Salaries Payable Total Liabilities 420 420 154 Equity 156 157 50,000 697 Common Stock Retained Earnings Total Equity Total Liabilities & Equity 158 50,697 51,117 160

161 Closing Entries 162 163 164 Date Particulars Debit Credit 165 9,750 30-Apr Comission Earned Income Summary 166 9,750 167 168 7,553 169 500 170 30-Apr Income Summary Depreciation expense Salaries expense Insurance expense Rent expense Office Supplies expense Repairs expense Telephone expense 3,620 133 1,800 400 173 350 750 176 2,197 30-Apr Income Summary Retained Earnings 2,197 1,500 30-Apr Retained Earnings Dividends 1,500

Credit Adventure Travel Post Closing Trial Balance For the month ended April 30 Particulars Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation - Computer Equipment Salaries Payable Common Stock Retained Earnings Total Debit 27,000 1,750 600 2,267 20,000 261 263 500 420 50,000 697 51,617 265 51,617 266