Question

Problem 3-6A Applying the accounting cycle LO P1, P2, P3, P4, P5 On April 1, 2017, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 1 Nozomi invested $31,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,200 cash for the first month's (April) rent 3 The company purchased $1,300 of office supplies for cash 10 The company paid $2,900 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 The company paid $1,000 cash for two weeks' salaries earned by employees. 24 The company collected $21,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $1,000 cash for two weeks salaries earned by employees. 29 The company paid $400 cash for minor repairs to the company's computer. 30 The company paid $1,250 cash for this month's telephone bi11. 30 The company paid $1,600 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. Two-thirds (or $161) 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's depreciation on the computer equipment is $500 d. Employees earned $350 of unpaid and unrecorded salaries as of month-end e. The company earned $2,300 of commissions that are not yet billed at month-end Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30 4. Journalize and post the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30, 2017 5b. Prepare the statement of retained earnings for the month of April 30, 2017 5c. Prepare the balance sheet at April 30, 2017, 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2017 Account Title Debit Credit 101: Cash 106: Accounts receivable 124: Office supplies 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation-Computer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 319: Dividends 405: Commissions earned 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense 1,300 2,900 Total 4,200$ Req 1 and 2 Req 4 Adj Entries>

Answer 1

Adventure Travel Journal entries Debit Credit Calculation 1-Apr Cash $ 3,000 30,000 Computer Equipment Common Stock 33,000 2-Apr Rent Expense $2,200 2,200 3-Apr Office Supplies $1,300 $1,300 10-Apr Prepaid Insurance $ 2,900 $ 2,900 14-Apr Salaries Expense $ 1,000 $1,000 24-Apr Cash 21,000 21,000 8Ap alaries Expense $ 1,000 Cash 1,000 29-Apr Repairs Expense $ 400 400 30-Apr Telephone Expense $1,250 1,250 30-Apr Dividends $ 1,600 $1,600 30-Apr Insurance expense $161 Prepaid Insurance 161 30-Apr Office Supplies Expense Office Supplies -1300-700 30-Apr Depreciation Expense-Computer Equip. Accumulated Depreciation-Computer Equip. $500 0-Apr Salaries expense Salaries Payable $ 350 $350 $2,300 30-Apr Accounts Receivable Commissions Eaned $2,300 Closing entries 30-Apr Commissions Eaned $23,300 Income Summary 23,300 30-Apr Income Summary $ 7,461 Depreciation Expense Computer Equip. Salaries expense Insurance expense Rent expense Office Supplies Expense Repairs Expense Telephone Expense 500 $ 2,350 161 $2,200 400 $ 1,250 30-Apr Income S $ 15,839 23300-7461 Retained Earnings $15,839 30-Apr Retained Earnings $ 1,600 Dividends 1,600

Adventure Travel T Accounts Date DebitDate CreditDate Debit Date Accounts Receivable CreditDate Debit Date CreditDate Debit Date Credit Cash Office Supplies Prepaid Insurance 1-Apr $ 3,000 2-Apr $ 2,200 30-Apr $ 2,300 3-Apr $ 1,300 30-Apr 600 10-Apr $ 2,900 30-Apr 161 24-Apr $21,0003-Apr $ 1,300 10-Apr $ 2,900 14-Apr 1,000 28-Apr $ 1,000 29-Apr $ 400 30-Apr $ 1,250 30-Apr $ 1,600 $12,350 1-Apr 30,000 $30,000 Bal Bal $ 2,300 Bal 700 Bal $ 2,739 Computer Equipment Accum. Depr.-Computer Equip Salaries Payable 30-Apr 500 30-Apr $ 350 Bal Bal $ 500 Bal $ 350 Bal Common Stock Retained Earnings Dividends Income Summary 1-Apr $33,000 30-Apr $ 1,600 30-Apr $15,839 30-Apr $ 1,600 30-Apr$ 1,60030-Apr $50030-Apr $23,300 30-Apr 2,350 30-Apr $ 161 30-Apr $ 2,200 30-Apr $ 600 30-Apr $ 400 30-Apr $ 1,250 30-Apr $ 15,839 Bal 33,000 Bal $14,239 Bal Bal Commissions Earned Depreciation Expense-Computer Equip. Salaries expense Insurance expense 24-Apr $21,000 30-Apr $ 500 30-Apr 2,300 14-Apr $ 1,000 28-Apr $ 1,000 30-Apr $ 50030-Apr $350 30-Apr $ 2,350 30-Apr $ 161 30-Apr $23,300 30-Apr $ 161 Bal S Bal. Bal Bal Rent expense Office Supplies Expense Repairs Expense Telephone Expense 2-Apr $ 2,200 30-Apr 2,200 30-Apr 600 30-Apr 600 29-Apr 400 30-Apr 400 30-Apr 1,250 30-Apr 1,250 Bal Bal Bal Bal

Adventure Travel Account Names Cash Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip Salaries Payable Common Stock Retained Earnings Dividends Commissions Earned Depreciation Expense-Computer Equip Salaries expense Insurance expense Rent expense Office Supplies Expense Repairs Expense Telephone Expense Totals Unadjusted TB Adjusted TB Debit Credit Post Closing TB Debit Credit Debit Credit 12,350 1,300 2,900 30,000 12,350 2,300 700 2,739 30,000 12,350 2,300 700 2,739 30,000 500 350 33,000 500 350 33,000 14,239 33,000 1,600 1,600 21,000 23,300 500 2,350 161 2,200 600 400 1,250 57,150 2,000 2,200 400 1,250 54,00054,000 57,150 48,08948,089

Answer 2

Add your answer here!