Following his recent loss at the U.S. elections, former President Trump has had to return to

work. He has decided to open a travel agency, and has asked you to be his intern. He would

like you to assist him with recording his monthly business transactions, and preparation of his

monthly financial statements.

On April 1,2021,Donald Trump created a new travel agency, Travel with Trump. The following

transaction occurred during the company's first month.

April 1: Trump invested $20,000 cash and computer equipment worth $40,000 in the company. April 2. The company rented furnished office space by paying $1,700 cash for the first month's(April)rent

April3: The company purchased$1,100 of office supplies for cash

April10:Thecompanypaid $3,600cash for the premium on a12-monthinsurancepolicy.Coveragebegins onApril11

April14:Thecompanypaid $1,800cashfortwoweeks'salariesearnedbyemployees

April 24:Thecompanycollected$7,900cashon commissions fromairlinesonticketsobtainedfor customers

April28:Thecompanypaid $1,800cash fortwoweeks'salaries earnedbyemployeesApril29:Thecompanypaid $250cash forminorrepairs tothecompany'scomputerApril30: Thecompanypaid$650 cashforthismonth's telephonebill

April30:DonaldTrump withdrew$1,500cashfromthecompanyforpersonaluse

TASK

1.Prepare journal entries to record the transactions for April and post them to the ledger

accounts

2.Prepare an unadjusted trial balance eat asApril30

3.Usethefollowinginformation to journalize and postadjustingentriesfor the month

a) Two-thirds of onemonth's insurancecoveragehasexpired

b)At theendofthemonth,$700 ofofficesuppliesare still available

c) This month's depreciation onthecomputerequipmentis$600

d)Employees earned$320ofunpaidand unrecorded salariesasatmonthend

e) Thecompanyearned$1,650ofcommissionsthatarenotyetbilled atmonthend

4.Preparetheincomestatementand thestatementofchangesin equityforthemonthofAprilandthestatement of financialpositionat April30, 2021

5.Preparejournal entriestoclosethetemporaryaccountsand posttheseentriestotheled

6.Preparea postclosingtrialbalance

Answer rating: 100% (QA)

The question is complete Here is the solution 1 Transactions in Journal Entries with Ledger Posting April 1 Debit Cash 20000 Investment from owner Deb... View the full answer