Question

Check my 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 Noroni 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 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

solution 1

DATE	ENTRY	DEBIT	CREDIT
April 1	cash a./c Dr.	30,000
	computer equipment a/c    Dr.	20,000
	to common stock a/c		50,000
April 2	Rent expenses a/c Dr.	1800
	to cash a/c		1800
April3	office supplies a/c Dr	1000
	to cash		1000
April 10	prepaid insurance a/c Dr	2400
	to cash		2400
April 14	salaries expenses a/c Dr	1600
	to cash		1600
April 24	Cash a/c Dr	8000
	to commission earned		8000
April 28	salaries exp. a/c Dr	1600
	to cash		1600
April 29	Repairs exp. a/c Dr.	350
	to cash a/c		350
April 30	Telephone exp. a/c Dr	750
	to cash a/c		750
April 30	Dividend a/c Dr	1500
	to cash		1500

solution 2: ledger accounts

CASH A/C
DATE	DEBIT	CREDIT	BALANCE
APR 01	30,000		30,000
APR 02		1800	28200
APR 03		1000	27200
APR 10		2400	24800
APR 14		1600	23200
APR 24	8000		31200
APR 28		1600	29600
APR 29		350	29250
APR 30		750	28500
APR 30		1500	27000
COMPUTER EQUIPMENT A/C
APR 01	20000		20000
COMMON STOCK A/C
APR 01		50000	50000
RENT EXPENSES
APR 02	1800		1800
APR 30		1800	0
OFFICE SUPPLIES
APR 3	1000		1000
APR 30		400	600
PREPAID INSURANCE
APR 10	2400		2400
APR30		133	2267
SALARIES EXPENSES
APR 14	1600		1600
APR 28	1600		3200
APR 30	420		3620
APR 30		3620	0
COMMISSION EARNED
APR 24		8000	8000
APR 30		1750	9750
APR 30	9750		0
REPAIR EXPENSES
APR 29	350		350
APR 30		350	0
TELEPHONE EXPENSES
APR 30	750		750
APR 30		750	0
DIVIDEND A/C
APR 30	1500		1500
APR 30		1500	0
INSURANCE EXPENSES
APR 30	133		133
APR 30		133	0
DEPRECIATION EXPENSES
APR 30	500		500
APR 30		500	0
ACCUMULATED DEP.
APR 30		500	500
SUPPLIES EXPENSES
APR 30	400		400
APR 30		400	0
SALARY PAYABLE
APR 30		420	420
ACCOUNT RECEIVABLE
APR 30	1750		1750

INCOME SUMMARY
DATE	DEBIT	CREDIT	BALANCE
APR30		9750	9750
APR30	3620		6130
APR30	1800		4330
APR30	350		3980
APR30	750		3230
APR30	400		2830
APR30	500		2330
APR30
APR30	133		2197
APR30	2197		0
RETAINED EARNINGS
APR30	1500		1500
APR30		2197	697

SOLUTION 3   

UNADJUSTED TRAIL BALANCE

	DEBIT	CREDIT
CASH	27000
OFFICE SUPPLIES	1000
PREPAID INSURANCE	2400
COMPUTER EQUIPMENT	20000
COMMON STOCK		50000
DIVIDENDS	1500
COMMISSION EARNED		8000
RENT EXPENSES	1800
SALARIES EXPENSES	3200
REPAIR EXPENSES	350
TELEPHONE EXPENSES	750
TOTAL	58000	58000

SOLUTION 4 ADJUSTING ENTRIES

APR 30	INSURANCE EXP. A/C Dr.	133
	to Prepaid insurance a/c			133
APR 30	supplies expenses a/c dr	400
	to office supplies			400
APR 30	Depriciation Expenses a/c dr	500
	Accumulated Dep . a/c			500
APR 30	salaries Expeses a/c Dr	420
	to salaries payable a/c			420
APR 30	accounts receivable a/c dr	1750
	to commision earned a/c			1750

NOTE : AS PER CHEGG POLICY WE HAVE ONLY TOI DO UPTO 4 QUESTION IF YOU YOU WANT TO I DO REAMINING QUESTION THEN UPLOAD IT AGAINA AND SPICIFY WHICH QUESTION YOU WANT TO SOLVE.

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