On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Nozomi invested $32,000 cash and computer equipment worth $35,000 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $2,400 cash for the first month's (April) rent. April 4 The company purchased $1,200 of office supplies for cash. April 10 The company paid $2,340 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,200 cash for two weeks' salaries earned by employees. April 24 The company collected $14,000 cash for commissions revenue. April 28 The company paid $1,200 cash for two weeks' salaries earned by employees. April 29 The company paid $500 cash for minor repairs to computer equipment. April 30 The company paid $1,450 cash for this month's telephone bill. April 30 The company paid $1,570 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 Equipment 209 Salaries Payable 307 Common Stock 318 Retained Earnings 403 Commissions Revenue 612 Depreciation Expense-Computer Equipment 622 Salaries Expense 637 640 Insurance Expense Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 901 Telephone Expense Income Summary 319 Dividends Use the following Information to prepare adjusting entries: a. Prepaid Insurance of $130 expired this month. b. At the end of the month, $800 of office supplies are still available. c. This month's depreciation on computer equipment is $300. d. Employees earned $540 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,000 of commissions revenue that is not yet recorded at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts In Requirement 6B GL tab. The company records prepaid and unearned Items in balance sheet accounts. 3. Using account balances from Requirement 6B GL tab, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6B GL tab, using April 30 Adjusted as the date. 5a. Using adjusted account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30. 5b. Prepare the income statement for the month of April 30. 5c. Prepare the statement of retained earnings for the month of April 30. 5d. Prepare the balance sheet at April 30. 6a. Prepare Journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance. On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Nozomi invested $32,000 cash and computer equipment worth $35,000 in the company in exchange for its common stock. April 3 The company rented furnished office space by paying $2,400 cash for the first month's (April) rent. April 4 The company purchased $1,200 of office supplies for cash. April 10 The company paid $2,340 cash for a 12-month insurance policy. Coverage begins on April 11. April 14 The company paid $1,200 cash for two weeks' salaries earned by employees. April 24 The company collected $14,000 cash for commissions revenue. April 28 The company paid $1,200 cash for two weeks' salaries earned by employees. April 29 The company paid $500 cash for minor repairs to computer equipment. April 30 The company paid $1,450 cash for this month's telephone bill. April 30 The company paid $1,570 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 Equipment 209 Salaries Payable 307 Common Stock 318 Retained Earnings 403 Commissions Revenue 612 Depreciation Expense-Computer Equipment 622 Salaries Expense 637 640 Insurance Expense Rent Expense 650 Office Supplies Expense 684 Repairs Expense 688 901 Telephone Expense Income Summary 319 Dividends Use the following Information to prepare adjusting entries: a. Prepaid Insurance of $130 expired this month. b. At the end of the month, $800 of office supplies are still available. c. This month's depreciation on computer equipment is $300. d. Employees earned $540 of unpaid and unrecorded salaries as of month-end. e. The company earned $2,000 of commissions revenue that is not yet recorded at month-end. Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to ledger accounts In Requirement 6B GL tab. The company records prepaid and unearned Items in balance sheet accounts. 3. Using account balances from Requirement 6B GL tab, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month, and then post to the ledger on Requirement 6B GL tab, using April 30 Adjusted as the date. 5a. Using adjusted account balances from Requirement 6B GL tab, prepare an adjusted trial balance as of April 30. 5b. Prepare the income statement for the month of April 30. 5c. Prepare the statement of retained earnings for the month of April 30. 5d. Prepare the balance sheet at April 30. 6a. Prepare Journal entries to close the temporary accounts and then post to Requirement 6B GL tab, using April 30 Close as the date. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Please answer the permanency of the joining mechanisms below. Please take note of the specifics of the joining mechanisms and part materials listed. Points will only be awarded to correct explanation...
-
Blue Spruce Corporation, a public company, is a large silver producer. Selected condensed information (in millions) for Blue Spruce Corporation follows for the year ended September 30, 2021: Cost of...
-
If interest is 10%, what is A? 40 40 30 30 20 20 10
-
A cylindrical wire of radius R elongates when subjected to a tensile force F. Let L0 represent the initial length of the wire and let L1 represent the final length. Young's modulus for the material...
-
Extend formula (8.2.5) to functions \(f\) defined on \(\mathbb{R}^{+} \times \mathbb{N}\) that are \(C^{1}\) with respect to the first variable, and prove that if \(\beta\) is a constant with...
-
A monopolist faces a market demand curve given by Q = 70 P: The monopolists marginal revenue function is given by MR = 70 2Q: a. If the monopolist can produce at constant average and marginal costs...
-
Match the graphs in figure 1 to the four scenarios listed below 19. If player talent is the same price for all teams (players can have different talent levels), which graph most likely represents...
-
A company sells a product for a price of $100 per unit. The variable cost per unit is $50. The company has fixed costs of $1 mill. per year. How many units do they have to sell to break even? (At...
-
Cellular production is often conducted in a U-shaped (horseshoe-shaped) cell, rather than the rectangular cells shown in Figure 3.6b. What might be the advantages of this \mathrm{U} shape? Cell Raw...
-
Consider what opportunities arise for an organisation in embracing BPR and Six-Sigma as the basis of pursuing quality.
-
Explain briefly the meaning and importance to auditing of the concept of materiality.
-
Is Crosbys work truly based on an approach rooted in engagement, exhortations and evangelism or is that merely a wrapper around an essentially mechanistic approach to achieving quality?
-
Distinguish briefly between a breach of auditors statutory duties and a breach of their common law duties.
-
Kara and Brandon Arnold are married and file a joint return. Their Social Security numbers are 000?00-1111 and 000?00-2222, respectively. Kara and Brandon have one son, Henry, age 3. His Social...
-
During registration at Tech every quarter, students in the Department of Management must have their courses approved by the departmental advisor. It takes the advisor an average of 4 minutes...
-
What is antisense RNA? How does it affect the translation of a complementary mRNA?
-
W hat is diauxic growth? Explain the roles of cAMP and CAP in this process.
-
What are the functions of activator proteins and repressor proteins in transcription? Explain how these proteins work at the molecular level.
Study smarter with the SolutionInn App