Question

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 Nozoni invested $30,000 cash and computer equippent 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 Use the following information: a. Prepaid insurance of $133 has expired this month. b. At the end of the month, $600 of office supplies are still available. C. This month's depreciation on the computer equipment is $500 d. Employees earned $420 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,750 of commissions that are not yet billed at month-end.

Answer 1

Journal Entry Particular Date Debit Credit Apr-01 Cash Computer Equipments To Common Stock $30000 $20000 $50000 Apr-02 Rent expenses To Cash $1800 $1800 Apr-03 $1000 Office Supplies To Cash $1000 Apr-10 $2400 Prepaid Insurance To cash $2400 Apr-14 $1600 Salaries expenses To Cash $1600

Apr-24 $8000 Cash To Commission Earned $8000 Apr-28 $1600 Salaries expenses To Cash $1600 Apr-29 $350 Repairs expenses To Cash $350 Apr-30 $750 Telephone expenses To Cash $750 Apr-30 $1500 Dividend To Cash $1500 Apr-30 $133 Insurance expenses To Prepaid Insurance $133 Apr-30 $400 Office Supplies expenes To Office Supplies $400

Apr-30 $500 Depreciation expenses To Accumuated depreciation $500 Apr-30 $500 Accumulated depreciation To Computer equipments $500 Apr-30 $420 Salaries expenses To Salaries Payable $420 Apr-30 $1750 Account Receivable To Commission Earned $1750

Adventure Travels Adjusted Trial Balance Apr-30 Account Title Debit Credit 101. Cash $27000 106. Account Recievable $1750 124.Office Supplies $600 128.Prepaid Insurance $2267 167.Comuter Equipments $19500 168. Accumulated Depriciation $0 209. Salaries Payable $420 307.Common Stock $50000 318.Retained Earnings $0 319.Dividends $1500 405.Commission Earned $9750 612.Depcreciation expenses $500 622. Salaries expenses $3620 637.Insurance expenses $133 640.Rent expenses $1800 $

650.Office expenses 684.Repairs expenses 688.Telephone expenses $400 $350 $750 $60170 $60170