On April 1, Jose Garcia created a new travel agency, Garcia Travel. The following transactions occurred during
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:
- Prepaid insurance of $100 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 $190.
- Employees earned $616 of unpaid and unrecorded salaries as of month-end.
- 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.
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson