Problem $3-5$A $($Algo$)$ Applying the accounting cycle LO P$1,$ P$3,$ P$4,$ P$5,$ P$6$

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 $$40,000$ cash and computer equipment worth $$25,000$ 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 $$1,100$ 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 $$1,300$ cash for two weeks' salaries earned by employees.

April $24$ The company collected $$14,000$ cash for commissions revenue.

April $28$ The company paid $$1,300$ cash for two weeks' salaries earned by employees.

April $29$ The company paid $$350$ cash for minor repairs to computer equipment.

April $30$ The company paid $$1,350$ cash for this month's telephone bill.

April $30$ The company paid $$1,540$ 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

$403$ Commissions Revenue

$612$ Depreciation Expense$-$Computer Equipment

$622$ Salaries Expense

$637$ Insurance Expense

$640$ Rent Expense

$650$ Office Supplies Expense

Prev

$1$ of $1$

Next