Question

Check my work 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 $43,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,000 cash for the first month's (April) rent. 3 The company purchased $1,500 of office supplies for cash. 10 The company paid $2,600 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,100 cash for two weeks' salaries earned by employees. 24 The company collected $14,500 cash for commissions earned. 28 The company paid $1,100 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 $950 cash for this month's telephone bill. 30 The company paid $1,900 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

Adventure Travel Reg 1 Journal entries Date Account 1-Apr Cash Computer Equipment Common Stock Credit Debit $ 43,000 $ 25,000 $ 68,000 $ 2,000 2-Apr Rent Expense Cash $ 2,000 $ 1,500 3-Apr Office Supplies Cash $ 1,500 $ 2,600 10-Apr Prepaid Insurance Cash $ 2,600 $ 1,100 14-Apr Salaries Expense Cash $ 1,100 $ 14,500 24-Apr Cash Commissions Earned $ 14,500 $ 1,100 28-Apr Salaries Expense Cash $ 1,100 $ 350 29-Apr Repairs Expense Cash $ 350 $ 950 30-Apr Telephone Expense Cash $ 950 $ 1,900 30-Apr Dividends Cash $ 1,900

Req4 Adjusting entries Date Account 30-Apr Insurance expense Prepaid Insurance Credit Calculation Debit $ 144 $ 144 $ 700 =1,500-800 30-Apr Office Supplies Expense Office Supplies $ 700 30-Apr Depreciation Expense-Computer Equip. Accumulated Depreciation-Computer Equip. $ 600 $ 350 30-Apr Salaries expense Salaries Payable $ 350 $ 2,100 30-Apr Accounts Receivable Commissions Earned $ 2,100

Adventure Travel Req 2, 6b T Accounts Date Debit Date Cash 1-Apr $ 43,000 24-Apr $ 14,500 Credit Date Credit Credit Date Credit Debit Date Accounts Receivable Date Debit Date Office Supplies 3-Apr $ 1,500 Debit Date Prepaid Insurance 10-Apr $ 2,600 2-Apr $ 2,000 3-Apr $ 1,500 10-Apr $ 2,600 14-Apr $ 1,100 28-Apr $ 1,100 29-Apr $ 350 30-Apr $ 950 30-Apr $ 1,900 Unadj Bal. $ 46,000 Unadj Bal. $ 1,500 Unadj Bal. $ 2,600 Unadj Bal. Apr 30 Adj $ . $ 2,100 Apr 30 Adj $ 700 Apr 30 Adj $ 144 Adj Bal. $ Adj Bal. $ 2,456 Adj Bal. $ 46,000 Computer Equipment 1-Apr $ 25,000 Adj Bal. $ 2,100 Accum. Depr. - Computer Equip 800 Salaries Payable Unadj Bal. $ 25,000 Unadj Bal. Apr 30 Adj $ $ . 600 Unadj Bal. Apr 30 Adj $ $ . 350 Adj Bal. $ 600 $ 350 $ 25,000 Common Stock 1-Apr $ 68,000 Adj Bal. Retained Earnings Adj Bal. Dividends 30-Apr $ 1,900 Income Summary Unadj Bal. $ 68,000 Unadj Bal. S . Unadj Bal. $ 1,900 Unadj Bal. $ - Adj Bal. $ 68,000 Adj Bal. $ 1,900 Adj Bal. $ . Apr 30 Close $ 1,900 Apr 30 Close $ 9,306 Adj Bal. Apr 30 Close $ 1,900 Apr 30 Close $ 7,294 Apr 30 Close $ 16,600 Apr 30 Close $ 9,306 Bal. $ 7,406 Bal. $ $ 68,000 Commissions Earned 24-Apr $ 14,500 Depreciation Expense-Computer Equip. Insurance expense Salaries expense 14-Apr $ 1,100 28-Apr $ 1,100 Unadj Bal. Apr 30 Adj $14,500 Unadj Bal. $ 2,100 Apr 30 Adj $ $ Unadj Bal. $ 2,200 Apr 30 Adj $ 350 Unadj Bal. Apr 30 Adj $ $ . 144 600 Adj Bal. $ 16,600 Adj Bal. $ 600 Adj Bal. $ 2,550 Adj Bal. $ 144 Apr 30 Close $ 16,600 Apr 30 Close $ 600 Apr 30 Close $ 2,550 Apr 30 Close $ 144 $ - Bal. Bal. Office Supplies Expense Rent expense 2-Apr $ 2,000 29-Apr $ Repairs Expense 350 Telephone Expense 30-Apr $ 950 Unadj Bal. $ 2,000 Unadj Bal. $ 350 Unadj Bal. $ 950 Unadj Bal. Apr 30 Adj $ $ - 700 Adj Bal. $ 2,000 Adj Bal. $ 700 Adj Bal. $ 350 Adj Bal. $ 950 Apr 30 Close $ Apr 30 Close $ 2,000 Apr 30 Close $ 700 Apr 30 Close $ 350 950 Bal. S - Bal. Bal. $ - Bal. $

Req3 Unadjusted TB Debit Credit 46,000 Req4 Adjusted TB Debit Credit 46,000 2,100 1,500 2,600 25,000 800 2,456 25,000 600 350 68,000 68,000 Adventure Travel Account Names Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable Common Stock Retained Earnings Dividends Commissions Earned Depreciation Expense-Computer Equip. Salaries expense Insurance expense Rent expense Office Supplies Expense Repairs Expense Telephone Expense Totals 1,900 1,900 14,500 16,600 2,200 2,000 600 2,550 144 2,000 700 350 950 85,550 350 950 82,500 82,500 85,550

16,600 Req 5a Adventure Travel Income Statement For Month Ended April 30 Revenues Commissions Earned Expenses Depreciation Expense-Computer Equip. Salaries expense Insurance expense Rent expense Office Supplies Expense Repairs Expense Telephone Expense Total Expenses Net Income 600 2,550 144 2,000 700 350 950 7,294 9,306 Statement of Retained Earnings For Month Ended April 30 Retained Earnings, April 1 Add: Net Income 9,306 Less: Dividends Retained Earnings, April 30 9,306 (1,900) 7,406

Reg 5c Adventure Travel Balance Sheet April 30 Assets Current Assets Cash Accounts Receivable Office Supplies Prepaid Insurance Total Current Assets 46,000 2,100 800 2,456 51,356 Property, Plant & Equipment Computer Equipment Accumulated Depreciation-Computer Equip. Total Property, Plant & Equipment Total Assets 25,000 (600) 24,400 75,756 Liabilities & Stockholders Equity Current Liabilities Salaries Payable 350 Stockholders Equity Common Stock Retained earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 68,000 7,406 75,406 75,756

Req 6a Closing entries Date Account 30-Apr Commissions Earned Income Summary Credit Debit $ 16,600 $ 16,600 $ 7,294 30-Apr Income Summary Depreciation Expense-Computer Equip. Salaries expense Insurance expense Rent expense Office Supplies Expense Repairs Expense Telephone Expense $ $ $ $ $ $ 600 2,550 144 2,000 700 350 950 $ 9,306 30-Apr Income Summary Retained Earnings $ 9,306 $ 1,900 30-Apr Retained Earnings Dividends $ 1,900

Adventure Travel Account Names Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable Common Stock Retained Earnings Totals Req7 Post Closing TB Debit Credit 46,000 2,100 800 2,456 25,000 600 350 68,000 7,406 76,356 76,356