Question

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 $47,000 cash and computer equipment worth $20,000 in the company. 2 The company rented furnished office space by paying $1,800 cash for the first month's (April) rent. 3 The company purchased $1,200 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 $1,500 cash for two weeks' salari 24 The company collected $9,500 cash for commissions earned. 28 The company paid $1,500 cash for two weeks' salaries earned by employees. 29 The company paid $400 cash for minor repairs to the company's computer. 30 The company paid $1,450 cash for this month's telephone bill. 30 Nozomi withdrew $1,900 cash from the company for personal use. 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 301 J. Nozomi, Capital 302 J. Nozomi, Withdrawals 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 Use the following information: a. Prepaid insurance of $133 has expired this month. b. At the end of the month, $800 of office supplies are still available. c. This month's depreciation on the computer equipment is $300. d. Employees earned $470 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,850 of commissions that are not yet billed at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts.

Answer 1

Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Nozomi	Answer -1 Journal Entries
Date	Account	Debit	Credit
April 1st	Cash	47,000.00
	Computer Equipment	20,000.00
	J. Nozomi, Capital		67,000.00
	(being share capital raised by providing cash and Equipment)
April 2nd	Rent Expense	1,800.00
	Cash		1,800.00
	(being rent paid for the month)
April 3rd	Office Supplies	1,200.00
	Cash		1,200.00
	(being office supplies purchased)
April 10th	Prepaid Insurance	2,400.00
	Cash		2,400.00
	(being insurance expense paid for the year)
April 14th	Salaries Expense	1,500.00
	Cash		1,500.00
	(being salaries paid for two weeks.)
April 24th	Cash	9,500.00
	Commission Earned		9,500.00
	(being commission income earned)
April 28th	Salaries Expense	1,500.00
	Cash		1,500.00
	(being salaries paid for two weeks.)
April 29th	Repairs Expense	400.00
	Cash		400.00
	(being repairs paid in cash.)
April 30th	Telephone Expense	1,450.00
	Cash		1,450.00
	(being Telephone Bill paid in cash.)
April 30th	J. Nozomi, Withdrawals	1,900.00
	Cash		1,900.00
	(being cash withdrawn for personal use.)

Answer -2 and 6 b- Ledger
Cash
Date	Account	Debit	Credit	Balance
April 1st	J. Nozomi, Capital	47,000.00		47,000.00
April 2nd	Rent Expense		1,800.00	45,200.00
April 3rd	Office Supplies		1,200.00	44,000.00
April 10th	Prepaid Insurance		2,400.00	41,600.00
April 14th	Salaries Expense		1,500.00	40,100.00
April 24th	Commission Earned	9,500.00		49,600.00
April 28th	Salaries Expense		1,500.00	48,100.00
April 29th	Repairs Expense		400.00	47,700.00
April 30th	Telephone Expense		1,450.00	46,250.00
April 30th	J. Nozomi, Withdrawals		1,900.00	44,350.00
Accounts Receivable
Date	Account	Debit	Credit	Balance
April 30th	Commissions Earned	1,850.00		1,850.00
Office Supplies
Date	Account	Debit	Credit	Balance
April 3rd	Cash	1,200.00		1,200.00
April 30th	Office Supplies Expense		400.00	800.00
Prepaid Insurance
Date	Account	Debit	Credit	Balance
April 10th	Cash	2,400.00		2,400.00
April 30th	Insurance Expense		133.00	2,267.00
Computer Equipment
Date	Account	Debit	Credit	Balance
April 1st	J. Nozomi, Capital	20,000.00	-	20,000.00
Accumulated Depreciation—Computer Equip.
Date	Account	Debit	Credit	Balance
April 30th	Depreciation Expense—Computer Equip.		300.00	300.00
Salaries Payable
Date	Account	Debit	Credit	Balance
April 30th	Salaries Expense	-	470.00	470.00
J. Nozomi, Capital
Date	Account	Debit	Credit	Balance
April 1st	Cash		47,000.00	47,000.00
April 1st	Computer Equipment		20,000.00	67,000.00
April 30th	Income Summary	-	3,397.00	70,397.00
April 30th	J. Nozomi, Withdrawals	1,900.00	-	68,497.00 Date April 30th Credit J. Nozomi, Withdrawals Debit 1,900.00 Account Cash Balance 1,900.00 Salaries Expense Credit - Date April 14th April 28th April 30th Account Cash Cash Salaries Payable Debit 1,500.00 1,500.00 470.00 Balance 1,500.00 3,000.00 3,470.00 Insurance Expense Credit Date April 30th Account Prepaid Insurance Debit 133.00 Balance 133.00 Rent Expense Credit Date April 2nd Account Cash Debit 1,800.00 Balance 1,800.00 Date April 30th Credit Office Supplies Expense Debit 400.00 Account Office Supplies Balance 400.00 Repairs Expense Credit Date April 29th Account Cash Debit 400.00 Balance 400.00 Telephone Expense Credit Date April 30th Account Cash Debit 1,450.00 Balance 1,450.00 Commission Earned Debit Date April 24th April 30th Account Cash Accounts Receivable Credit 9,500.00 1,850.00 Balance 9,500.00 11,350.00 Date April 30th Depreciation Expense-Computer Equip. Account Debit Accumulated Depreciation-Computer Equip. 300.00 Credit Balance 300.00 Debit Credit 11,350.00 Date April 30th April 30th April 30th April 30th April 30th April 30th April 30th April 30th Income Summary Account Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 300.00 3,470.00 133.00 1,800.00 400.00 400.00 1,450.00 Balance 11,350.00 11,050.00 7,580.00 7,447.00 5,647.00 5,247.00 4,847.00 3,397.00 Credit Debit 44,350.00 1,200.00 2,400.00 20,000.00 67,000.00 Answer 3- Unadjusted Trial Balance Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable J. Nozomi, Capital J. Nozomi, Withdrawals Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Total 1,900.00 9,500.00 3,000.00 1,800.00 400.00 1,450.00 76,500.00 76,500.00 133.00 Answer 4- Adjustment Entries April 30th Insurance Expense Prepaid Insurance (being insurance expense recorded for April) 133.00 400.00 April 30th Office Supplies Expense Office Supplies (being office supplies expense booked for April) 400.00 300.00 April 30th Depreciation Expense-Computer Equip. Accumulated Depreciation-Computer Equip. (being depreciation expense booked for April) 300.00 470.00 April 30th Salaries Expense Salaries Payable |(being salaries payable for April) 470.00 1,850.00 April 30th Accounts Receivable Commissions Earned (being Unearned Commissions recorded for April) 1,850.00 Answer 4- Adjusted Trial Balance Credit Cash Debit 44,350.00 1,850.00 800.00 2,267.00 20,000.00 300.00 470.00 67,000.00 1,900.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable J. Nozomi, Capital J. Nozomi, Withdrawals Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Total 11,350.00 300.00 3,470.00 133.00 1,800.00 400.00 400.00 1,450.00 79,120.00 79,120.00 Amount 11,350.00 Answer 5 a- Income Statement Particulars Revenues Commission Earned Expenses Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Total Expenses Net Income 300.00 3,470.00 133.00 1,800.00 400.00 400.00 1,450.00 7,953.00 3,397.00 Answer 5 b-Statement of Owner's capital J. Nozomi, Capital Net Income Dividends Paid J. Nozomi, Capital April 30, 2017 67,000.00 3,397.00 1,900.00 68,497.00 Answer 5 c-Balance Sheet Cash Amount 44,350.00 1,850.00 800.00 2,267.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Total Assets Liabilities Salaries Payable Total Liabilities 20,000.00 (300.00) 68,967.00 470.00 470.00 J. Nozomi, Capital Total Equity Total Liabilities & Equity 68,497.00 68,497.00 68,967.00 Credit Answer 6 a- Closing Entries Date Account April 30th Commission Earned Income Summary Debit 11,350.00 11,350.00 7,953.00 April 30th Income Summary Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 300.00 3,470.00 133.00 1,800.00 400.00 400.00 1,450.00 3,397.00 April 30th Income Summary J. Nozomi, Capital 3,397.00 1,900.00 April 30th J. Nozomi, Capital J. Nozomi, Withdrawals 1,900.00 Credit Answer 7- Post Closing Trial Balance Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable J. Nozomi, Capital Total Debit 44,350.00 1,850.00 800.00 2,267.00 20,000.00 300.00 470.00 68,497.00 69,267.00 | 69,267.00