Question

On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $32,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,800 cash for the first month's (April) rent. 3 The company purchased $1,300 of office supplies for cash. 10 The company paid $2,800 cast for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,500 cash for two weeks' salaries earned by employees. 24 The company collected $22,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,500 cash for two weeks' salaries earned by employees. 29 The company paid $300 cash for minor repairs to the company's computer. 30 The company paid $1,300 cash for this month's telephone bill. 30 The company paid $1,700 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 Barned 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. Two-thirds (or $156) of one month's insurance coverage has expired. b. At the end of the month, $600 of office supplies are still available. C. This month's depreciation on the computer equipment is $400. d. Employees earned $320 of unpaid and unrecorded salaries as of month-end, e. The company earned $1,600 of commissions that are not yet billed at month-end.

Answer 1

Account Titles	Debit	Credit
Insurance Expense	$             156
Prepaid Insurance		$             156
Office Supplies Expense	$             700
Office Supplies		$             700
Depreciation Expense - Computer Equip	$             400
Accumulated Depreciation - Comp		$             400
Salaries Expense	$             320
Salaries Payable		$             320
Accounts Receivable	$          1,600
Commission Earned		$          1,600

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