Question

The following information applies to the questions displayed below.] On Apri 1, 2015, Jennifer Stafford created a new travel agency, See-t-Now Travel. The following transactions occurred during the company's first month. April 1 Stafford invested $20,000 cash and computer equipment worth $40,000 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 $1,100 of office supplies for cash. 10 The company paid $3,600 cash for the premium on a 12-month insurance policy. Coverage begins on April 11 14 The company paid $1,800 cash for two weeks' salaries earned by employees. 24 The company collected $7.900 cash on commissions from airlines on tickets obtained for 28 The company paid $1,800 cash for two weeks' salaries earned by employees 29 The company paid $250 cash for minor repairs to the company's computer 30 The company paid $650 cash for this month's telephone bil. 30 Stafford withdrew $1,500 cash from the company for personal use. The company's chart of accounts follows: 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 101 Cash 124 Office Supplies 128 Prepaid I 167 Computer Equipment 168 Accumulated Depn 209 Salaries Payable 301 J. Stafford, Capital 302 J. Stafford, Withdrawals uter Equip. Use the following information: THe company's chart of accounts follows: 101 Cash 06 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation-Computer Equip. 209 Salaries Payable 301 J. Stafford, Capital 302 J. Stafford, Withdrawals 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. Two-thirds of one month's insurance coverage has expired. b. At the end of the month, $700 of office supplies are still available. c. This month' d. Employees earned $320 of unpaid and unrecorded salaries as at month-end. e. The company earned $1,650 of commissions that are not yet billed at month-end. s depreciation on the computer equipment is $600 value: 10.00 points Required: 2. Prepare joumal entries to record the transactions for April. The company records prepaid and unearned items in statement of financial position accounts. (Omit the "$" sign in your response.) 6. 20.00 points April 30 To close the (Click to required. Omit the "$" sign in your response.) 6.2 Post the journal entries to the ledger. (Leave no cells blank -be certain to enter "o" wherever required. Omit the "$" sign in your response.) Cash Ba April 1 10 14 24 30 April 30 Credit April 3 30 ce Bal April 10 30 Computer E Date April 1 Credit се Date April 30 Dbmlated redl Credit April 30 J. Stafford, Capital April 1 April 30 April 24 April 30 April 14 28

Answer 1

answer journal entries for month of April

date particulars    debit credit

1st April cash A/c debit 20000

computer equipment a/c debit 40000

J. Stafford capital a/c credit 60,000

2nd April Rent a/c debit 1700

cash A/c credit 1700

3rd April office supplies A/c debit 1100

cash A/c credit 1100

10 April prepaid insurance A/c debit 3600

cash A/c credit 3600

14 April salary A/c debit 1800

cash A/c credit 1800

24 April cash A/c debit 7900

commission earned a/c credit 7900

28 April salary A/c debit 1800

cash a/c credit 1800

29 April repair A/c debit 250

cash A/c credit 250

30 April telephone expense A/c debit 650

cash a/c credit 650

30 April J. Stafford withdrawals a/c debit 1500

cash a/c credit 1500 30 April insurance expense a/c debit 200

prepaid insurance a/c credit 200

30 April office supplies expense a/c debit 400

office supplies a/c credit 400

30 April accumulated depreciation a/c debit 7200

computer equipment a/c credit 7200

30 April depreciation expense a/c debit 600

accumulated depreciation a/c credit 600

30 April salary a/c debit 320

salary payable a/c credit 320

30 april account receivables a/c debit 1650

commission a/c credit 1650

answer journal entry to close the temparory accounts

date journal ladger debit credit

30 april to close revenue accounts

commission a/c debit (7900+1650) 9950

income summary a/c credit 9950

to close expense account

30 April income summary a/c debit 7720

rent a/c credit 1700

insurance expense a/c credit    200

office supplies expense A/c credit       400

salary a/c (1800+1800+320 credit 3920

repair a/c credit     250

telephone expense a/c credit 650

depreciation expense A/c credit 600

30 april to close income summary account

income summary a/c debit 2230  

J. stafford capital a/c credit 2230

30 April to close withdrawal account

J. Stafford capital account debit 1500

J. Stafford withdrawal account credit 1500

answer posting to the ledger

   journal ledger accounts

date debit credit balance

cash account

1. 20,000 0 20,000

2 0 1700 18300

3 0 1100 17200

10 0 3600 13600

14 0 1800 11800

24 7900 0 19700

28 0 1800 17900

29 0 250 17650

30 0 650 17000

30 0 1500 15500

account receivables a/c

30 1650 0 1650

office supplies a/c

3 1100 0 1100

30 0 400 700

prepaid insurance a/c

10 3600 0 3600

30 0 200 3400

computer equipment a/c

1 40,000 0 40,000

30 0 7200 32800

accumulated depreciation a/c

30 7200 0 7200

30 0 600 6600

salary payable a/c

30 0 320 320

J. Stafford capital a/c

1 0 60,000 60,000

30 1500 2230 67330

J. Stafford withdrawal a/c

30 1500 1500 0

commission earned a/c

24 0 7900 7900

30 0 1650 9550

30 9550 0 0

depreciation expense a/c

30 600 600 0

salary expense a/c

14 1800 0 1800

28 1800 0 3600

30 320 3920 0

insurance expense a/c

30 200 200 0

rent expense a/c

2 1700 0 1700

30 0 1700 0

office supplies expense a/c

30 400 400 0

repair exepnse a/c

29 250 0 250

30 0 250 0

telephone expense a/c

30 650 650 0

income summary a/c

30 9950 9950 0