Question

On April 1, Juro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. Se. Prepare the balance sheet April ba. Propre journal entre todos temporary accounts and then post to Requiremento bb, Post the journal entries to the ledger 7. Prepare a post-closing trial balance April | Nacinvested 545.000 cash and computer quipment worth $20,000 in the company in exchange for common stock 2 The company rented furnished office space by paying $1.000 cash for the first month's (April) rent 3 The company purchased $1.200 of office supplies for cash. 10 The company 2.900 cash for the premium on a 12-month insurance policy, Coverage begins on April 11. 14 The company paid $1,200 cash for two weeks' salvies earned by employees 24 The company collected 517,000 cash for commissions comed. 28 The company paid $1.200 cash for two weeks'salaries camed by employees. 29 The company paid $450 cash for minor repairs to the company's computer 30 The company paid $1.000 cash for this month's telephone bill. 30 The company paid $2.300 cash in dividends. The company's chart of accounts follows: 101 Cash 106 A s Receivable 124 Office Supplies 128 Prepard Insurance 107 Computer Equipment 168 Accumulated Depreciation Computer Equip 209 Salaries Payable 307 Common Stock 318 Retained Earnings 319 Dividends 405 Commissions Famed 612 Depreciation Expert Computer Equip 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 650 Office Supplies Expense 684 Repairs Expanse 688 Telephone Expense 901 Income Summary Use the following information: 2. Prepaid insurance of stol has expired this month b. At the end of the month, $700 of office supplies are still available c. This month's depreciation on the computer equipment is so d. Employees canned $410 of unpaid and recorded salaries as of month-end The company camed $2.500 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 ob. The company records prepaid and uncamedlem in balance sheet accounts. 3. Using account balances from Requirement , prepare an unadjusted trial balance as of April 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. Sa. Prepare the income statement for the month of Apnl 30. Sb. Prepare the statement of retained earnings for the month of April 30.

Answer 1

Dividends Date April 30th Account Debit Credit Balance Cash 2,300.00 2,300.00 Salaries Expense Date April 14th April 28th April 30th Account Cash Debit Credit Balance 1,200.00 1,200.00 Cash 2,400.00 1,200.00 Salaries Payable 2,810.00 410.00 Insurance Expense Account Prepaid Insurance Debit Credit Balance Date April 30th 161.00 161.00 Rent Expense Account Date April 2nd Debit Credit Balance Cash 1,600.00 1,600.00 Office Supplies Expense Account Office Supplies Debit Credit Balance Date April 30th 500.00 500.00 Repairs Expense Date April 29th Account Cash Credit Debit Balance 450.00 450.00 Telephone Expense Date April 30th Account Cash Credit Debit Balance 1,000.00 1,000.00 Commission Earned Debit Credit Balance Date Account April 24th April 30th Cash 17,000.00 17,000.00 Accounts Receivable 2,500.00 19,500.00 Depreciation Expense-Computer Equip. Account Debit Credit Balance Date Accumulated Depreciation-Computer Equip. April 30th 600.00 600.00 Income Summary Account Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Debit Credit Balance Date April 30th April 30th April 30th April 30th April 30th April 30th April 30th April 30th 19,500.00 19,500.00 600.00 18,900.00 2,810.00 16,090.00 161.00 15,929.00 1,600.00 14,329.00 500.00 13,829.00 450.00 13,379.00 1,000.00 12,379.00 Unadjusted Trial Balance Debit Credit Cash 50,150.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable 1,200.00 2,900.00 20,000.00 Common Stock 65,000.00 Retained Earnings Dividends 2,300.00 Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense 17,000.00 2,400.00 Rent Expense 1,600.00 Office Supplies Expense Repairs Expense Telephone Expense 450.00 1,000.00 Total 82,000.00 82,000.00 Adjustment Entries April 30th Insurance Expense 161.00 Prepaid Insurance (being insurance expense recorded for April) 161.00 April 30th Office Supplies Expense 500.00 Office Supplies (being office supplies expense booked for April) 500.00 April 30th Depreciation Expense-Computer Equip. Accumulated Depreciation-Computer Equip. (being depreciation expense booked for April) 600.00 600.00 April 30th Salaries Expense Salaries Payable (being salaries payable for April) 410.00 410.00 April 30th Accounts Receivable 2,500.00 Commissions Earned (being Unearned Commissions recorded for April) 2,500.00 Adjusted Trial Balance Debit Credit Cash 50,150.00 2,500.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Salaries Payable Common Stock Retained Earnings 700.00 2,739.00 20,000.00 600.00 410.00 65,000.00 Dividends 2,300.00 Commission Earned Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 19,500.00 600.00 2,810.00 161.00 1,600.00 500.00 450.00 1,000.00 Total 85,510.00 85,510.00 Income Statement Particulars Amount Revenues Commission Earned Expenses Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense Total Expenses Net Income 19,500.00 600.00 2,810.00 161.00 1,600.00 500.00 450.00 1,000.00 7,121.00 12,379.00 |Closing Entries Account April 30th Commission Earned Income Summary Credit Debit Date 19,500.00 19,500.00 April 30th Income Summary 7,121.00 Depreciation Expense-Computer Equip. Salaries Expense Insurance Expense Rent Expense Office Supplies Expense Repairs Expense Telephone Expense 600.00 2,810.00 161.00 1,600.00 500.00 450.00 1,000.00 April 30thIncome Summary Retained Earnings 12,379.00 12,379.00 April 30th Retained Earnings 2,300.00 Dividend 2,300.00 Retained Earnings Debit Credit Balance Date Account April 30th April 30th Income Summary 12,379.00 12,379.00 Dividends Paid 10,079.00 2,300.00 Retained Earnings Retained Earnings April 1, 2017 Net Income Dividends Paid Retained Earnings April 30, 2017 12,379.00 2,300.00 10,079.00 Balance Sheet Amount Cash 50,150.00 Accounts Receivable Office Supplies Prepaid Insurance Computer Equipment Accumulated Depreciation-Computer Equip. Total Assets 2,500.00 700.00 2,739.00 20,000.00 (600.00) 75,489.00 Liabilities Salaries Payable Total Liabilities 410.00 410.00 Common Stock Retained Earnings Total Equity Total Liabilities & Equity 65,000.00 10,079.00 75,079.00 75,489.00 Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

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Nozomi	Journal Entries
Date	Account	Debit	Credit
April 1st	Cash	45,000.00
	Computer Equipment	20,000.00
	Common Stock		65,000.00
	(being share capital raised by providing cash and Equipment)
April 2nd	Rent Expense	1,600.00
	Cash		1,600.00
	(being rent paid for the month)
April 3rd	Office Supplies	1,200.00
	Cash		1,200.00
	(being office supplies purchased)
April 10th	Prepaid Insurance	2,900.00
	Cash		2,900.00
	(being insurance expense paid for the year)
April 14th	Salaries Expense	1,200.00
	Cash		1,200.00
	(being salaries paid for two weeks.)
April 24th	Cash	17,000.00
	Commission Earned		17,000.00
	(being commission income earned)
April 28th	Salaries Expense	1,200.00
	Cash		1,200.00
	(being salaries paid for two weeks.)
April 29th	Repairs Expense	450.00
	Cash		450.00
	(being repairs paid in cash.)
April 30th	Telephone Expense	1,000.00
	Cash		1,000.00
	(being Telephone Bill paid in cash.)
April 30th	Dividends	2,300.00
	Cash		2,300.00
	(being dividends paid.)

Cash
Date	Account	Debit	Credit	Balance
April 1st	Common Stock	45,000.00		45,000.00
April 2nd	Rent Expense		1,600.00	43,400.00
April 3rd	Office Supplies		1,200.00	42,200.00
April 10th	Prepaid Insurance		2,900.00	39,300.00
April 14th	Salaries Expense		1,200.00	38,100.00
April 24th	Commission Earned	17,000.00		55,100.00
April 28th	Salaries Expense		1,200.00	53,900.00
April 29th	Repairs Expense		450.00	53,450.00
April 30th	Telephone Expense		1,000.00	52,450.00
April 30th	Dividends		2,300.00	50,150.00
Accounts Receivable
Date	Account	Debit	Credit	Balance
April 30th	Commissions Earned	2,500.00		2,500.00
Office Supplies
Date	Account	Debit	Credit	Balance
April 3rd	Cash	1,200.00		1,200.00
April 30th	Office Supplies Expense		500.00	700.00
Prepaid Insurance
Date	Account	Debit	Credit	Balance
April 10th	Cash	2,900.00		2,900.00
April 30th	Insurance Expense		161.00	2,739.00
Computer Equipment
Date	Account	Debit	Credit	Balance
April 1st	Common Stock	20,000.00	-	20,000.00
Accumulated Depreciation—Computer Equip.
Date	Account	Debit	Credit	Balance
April 30th	Depreciation Expense—Computer Equip.		600.00	600.00
Salaries Payable
Date	Account	Debit	Credit	Balance
April 30th	Salaries Expense	-	410.00	410.00
Common Stock
Date	Account	Debit	Credit	Balance
April 1st	Cash		45,000.00	45,000.00
April 1st	Computer Equipment		20,000.00	65,000.00