Question

On April 1, Jose Garcia created a new travel agency, Garcia Travel. The following transactions occurred during the company’s first month.

Apr.		1		Garcia invested $38,000 cash and computer equipment worth $11,400 in the company.
Apr.		2		The company rented furnished office space by paying $2,600 cash for the first month’s (April) rent.
Apr.		3		The company purchased $1,200 of office supplies for cash.
Apr.		10		The company paid $1,800 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
Apr.		14		The company paid $1,540 cash for two weeks’ salaries earned by employees.
Apr.		24		The company collected $24,000 cash for commissions earned.
Apr.		28		The company paid $1,540 cash for two weeks’ salaries earned by employees.
Apr.		29		The company paid $650 cash for minor repairs to the company’s computer.
Apr.		30		The company paid $400 cash for this month’s telephone bill.
Apr.		30		Garcia withdrew $1,700 cash from the company for personal use.

Information for month-end adjustments follows:

1. Prepaid insurance of $100 has expired this month.
2. At the end of the month, $600 of office supplies are still available.
3. This month’s depreciation on the computer equipment is $190.
4. Employees earned $616 of unpaid and unrecorded salaries as of month-end.
5. The company earned $1,830 of commissions that are not yet billed at month-end.

General Journal tab - Prepare journal entries for Garcia Travel's first month of operations. Prepare any necessary adjusting and closing entries for the current month.

General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

Trial Balance tab - You may view the unadjusted, adjusted, or post-closing trial balances by choosing from the dropdown box below. Your choice will determine the reported values on the financial statement tabs.

Income Statement tab - Use the drop-downs to select the accounts properly included on the income statement. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Statement of Owner's Equity tab - The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Balance Sheet tab - Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted, adjusted or post-closing balances will appear for each account, based on your selection.

Post-Closing tab - Use the drop-downs to indicate whether each account is included on the post-closing trial balance.

Answer 1