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 $46,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. | ||
2 | The company rented furnished office space by paying $2,800 cash for the first month’s (April) rent. | |||
3 | The company purchased $1,000 of office supplies for cash. | |||
10 | The company paid $2,200 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 $16,500 cash for commissions earned. | |||
28 | The company paid $1,100 cash for two weeks' salaries earned by employees. | |||
29 | The company paid $550 cash for minor repairs to the company's computer. | |||
30 | The company paid $800 cash for this month's telephone bill. | |||
30 | The company paid $2,000 cash in dividends. |
The company's chart of accounts follows:
101 | Cash | 405 | Commissions Earned |
106 | Accounts Receivable | 612 | Depreciation Expense—Computer Equip. |
124 | Office Supplies | 622 | Salaries Expense |
128 | Prepaid Insurance | 637 | Insurance Expense |
167 | Computer Equipment | 640 | Rent Expense |
168 | Accumulated Depreciation—Computer Equip. | 650 | Office Supplies Expense |
209 | Salaries Payable | 684 | Repairs Expense |
307 | Common Stock | 688 | Telephone Expense |
318 | Retained Earnings | 901 | Income Summary |
319 | Dividends | ||
Use the following information:
Prepaid insurance of $122 has expired this month.
At the end of the month, $600 of office supplies are still available.
This month’s depreciation on the computer equipment is $500.
Employees earned $310 of unpaid and unrecorded salaries as of month-end.
The company earned $2,150 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.
3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.
4. Journalize the adjusting entries for the month and prepare the adjusted trial balance.
5a. Prepare the income statement for the month of April 30.
5b. Prepare the statement of retained earnings for the month of April 30.
5c. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b.
6b. Post the journal entries to the ledger.
7. Prepare a post-closing trial balance.
Date | Account Titles and Explanation | Debit $ | Credit $ |
2013 | |||
Apr-01 | Cash Accounts | 30,000 | |
Computer equipment | 20,000 | ||
Common stock | 50,000 | ||
(To be record cash and asset investment in the business as common stock) | |||
Apr-02 | Rent Expenses | 1,800 | |
Cash Account | 1,800 | ||
(To be record payment of rent) | - | ||
Apr-03 | Office Supplies | 1,000 | |
Cash Account | 1,000 | ||
(To be record purchase of office supplies) | |||
Apr-10 | Prepaid Insurance | 2,400 | |
Cash Account | 2,400 | ||
(To be record prepaid insurance prepium payment) | |||
Apr-14 | Salaries and Wages Expenses | 1,600 | |
Cash Account | 1,600 | ||
(To be record payment of staff salary) | |||
Apr-24 | Cash Account | 8,000 | |
Commission income | 8,000 | ||
Apr-28 | Salaries and Wages Expenses | 1,600 | |
Cash Account | 1,600 | ||
(To be record payment of staff salary) | |||
Apr-29 | Computer's Repaires and maintenance | 350 | |
Cash Account | 350 | ||
(To be record expenses of repaires and maintenance) | |||
Apr-30 | Telephone Expenses | 750 | |
Cash Account | 750 | ||
(To be record payment of telephone expenses) | |||
Apr-30 | Dividends | 1,500 | |
Cash Account | 1,500 | ||
(To be record payment of dividends) |
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.
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 $35,000 in the company. 2 The company rented furnished office space by paying $1,700 cash for the first month’s (April) rent. 3 The company purchased $1,900 of office supplies for cash. 10 The company paid $2,700 cash for the premium on a 12-month insurance policy. Coverage begins on April...
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 $48,000 cash and computer equipment worth $30,000 in the company. 2 The company rented furnished office space by paying $1,600 cash for the first month’s (April) rent. 3 The company purchased $1,900 of office supplies for cash. 10 The company paid $2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April...
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...
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 $40,000 in the company 2 The company rented furnished office space by paying $2,600 cash for the first month's (April) rent 3 The company purchased $1,100 of office supplies for cash. 10 The company paid $2.700 cash for the premium on a 12-month insurance policy. Coverage begins on April...
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 $34,000 cash and computer equipment worth $40,000 in the company 2 The company rented furnished office space by paying $1,500 cash for the first month's (April) rent. 3 The company purchased $1,000 of office supplies for cash. 10 The company paid $2,500 cash for the premium on a 12-month insurance policy. Coverage begins on April...
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 $30,000 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 $1,000 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...
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 $2,600 cash for the first month’s (April) rent. 3 The company purchased $1,400 of office supplies for cash. 10 The company paid $2,800 cash for the premium on a 12-month insurance...
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 $39,000 cash and computer equipment worth $35,000 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 $1,300 of office supplies for cash. 10 The company paid $2,500 cash for the premium on a 12-month insurance...
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 $34,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,700 cash for the first month’s (April) rent. 3 The company purchased $1,100 of office supplies for cash. 10 The company paid $3,000 cash for the premium on a 12-month insurance...
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 $48,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,200 cash for the first month’s (April) rent. 3 The company purchased $1,700 of office supplies for cash. 10 The company paid $2,400 cash for the premium on a 12-month insurance...