The Lewis N. Clarke Travel Agency has a calendar year-end. The following transactions occurred during the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Lewis N. Clarke Travel Agency has a calendar year-end. The following transactions occurred during the year: On September 1, it received $3,396 from a customer for prepaid travel consulting services. The customer will be using these travel consulting services in an equal amount for the next six (6) consecutive months. On October 1, it signed a lease to rent a storefront and paid $54,960 for twelve (12) months, beginning immediately. You may assume an equal amount of the rent is used up for each month during the term of the lease. On November 16, it received an invoice from American Airlines for $2,871 for tickets it had purchased on behalf of its clients. It paid the invoice in full on December 5. On December 12, it billed $1.156 to a customer for travel commissions earned. The customer paid the invoice on December 28. QUESTIONS: 1. For each transaction, prepare the journal entry to record the initial transaction. Make sure to properly format your journal entry. (HINT: there are four entries you must make.) (Each correct journal entry is worth 1 point.) 2. For each transaction, prepare any necessary adjusting journal entry as of December 31 (or any other applicable date provided). Make sure to properly format your journal entry. You may properly assume no adjusting entries have been prepared at the end of each month previously. (HINT: there are four entries you must make.) (Each correct journal entry is worth 1 point.) SPECIFIC INSTRUCTIONS: For each journal entry, type your response in the following format: DR (account name) $(amount) CR (account name) $(amount) Do not attempt to indent your credits as they will not format correctly, and we will not be able to grade your answer. Disregard this specific instruction at your own risk. For example, if you are making an entry to debit Cash for $100 and credit Accounts Payable for $100, you would enter the following: DR Cash $100 CR Accounts Payable $100 The Lewis N. Clarke Travel Agency has a calendar year-end. The following transactions occurred during the year: On September 1, it received $3,396 from a customer for prepaid travel consulting services. The customer will be using these travel consulting services in an equal amount for the next six (6) consecutive months. On October 1, it signed a lease to rent a storefront and paid $54,960 for twelve (12) months, beginning immediately. You may assume an equal amount of the rent is used up for each month during the term of the lease. On November 16, it received an invoice from American Airlines for $2,871 for tickets it had purchased on behalf of its clients. It paid the invoice in full on December 5. On December 12, it billed $1.156 to a customer for travel commissions earned. The customer paid the invoice on December 28. QUESTIONS: 1. For each transaction, prepare the journal entry to record the initial transaction. Make sure to properly format your journal entry. (HINT: there are four entries you must make.) (Each correct journal entry is worth 1 point.) 2. For each transaction, prepare any necessary adjusting journal entry as of December 31 (or any other applicable date provided). Make sure to properly format your journal entry. You may properly assume no adjusting entries have been prepared at the end of each month previously. (HINT: there are four entries you must make.) (Each correct journal entry is worth 1 point.) SPECIFIC INSTRUCTIONS: For each journal entry, type your response in the following format: DR (account name) $(amount) CR (account name) $(amount) Do not attempt to indent your credits as they will not format correctly, and we will not be able to grade your answer. Disregard this specific instruction at your own risk. For example, if you are making an entry to debit Cash for $100 and credit Accounts Payable for $100, you would enter the following: DR Cash $100 CR Accounts Payable $100
Expert Answer:
Answer rating: 100% (QA)
September 1 DR Prepaid Travel Consulting Services 3396 CR ... View the full answer
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these accounting questions
-
On January 1, Pulse Recording Studio (PRS) had the following account balances. The following transactions occurred during January. 1. Received $ 2,500 cash on 1/ 1 from customers on account for...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
On April 1, 2011, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month. April 1 Nozomi invested $32,000 cash and computer...
-
In determining an employee's net pay, which of the following taxes would be deducted? a. FUTA taxes b. SUTA taxes c. FICA taxes d. All of these choices are correct.
-
Ithaca Co. considers placing 30 percent of its excess funds in a one-year Singapore dollar deposit and the remaining 70 percent of its funds in a one-year Canadian dollar deposit. The Singapore...
-
How can we pledge allegiance to the flag of the United States of America and not establish laws to punish people who burn the flag to make a statement? We are a people who punish an individual who...
-
For each of the following, (a) calculate the mean, standard deviation, and standard error of the mean for each Group and (b) construct a bar graph (assume the independent variable is condition and...
-
Tomkung Corporations income statements are presented in the following spreadsheet. Required Construct a spreadsheet to conduct horizontal analysis of the income statements for 2015 and2014. 2015 2014...
-
Oslo Company prepared the following contribution format income statement based on a sales volume of 1 , 0 0 0 units ( the relevant range of production is 5 0 0 units to 1 , 5 0 0 units ) : Sales $ 2...
-
1. Based on the information presented in this case, how would you describe Shake Shacks retail image? 2. How would you describe the store atmosphere that Shake Shack seeks to maintain? 3. The...
-
What factor in fraud investigation does M.I.C.E. focus on? External factors Incentives Culture Motivation
-
Which of the following statements concerning the accounting and financial reporting practices for revenue in government hospitals is false? a. Only the amount of patient service charges that one has...
-
Unapportioned Authority is reclassified as Apportionments when a. the Office of Management and Budget releases enacted appropriations to the federal agency. b. the appropriate agency officials assign...
-
What minimum classifications must be used to report net assets in the government-wide Statement of Net Assets? In the proprietary funds Statement of Net Assets?
-
Direct labor costs incurred by a federal agency during a period will be reflected in the agency's budgetary accounts as a. a debit to Expended Appropriations and credit to Cash. b. a debit to...
-
Formal notification that Congress has enacted an appropriation for an agency requires recognition by the agency in a. budgetary accounts only. b. proprietary accounts only. c. both budgetary and...
-
Record the journal entries for each of the transactions listed for the city of Watertower Park. The trial balance for the city on January 1, 20X7, is given next. Debit Credit Cash $10,000 Delinquent...
-
As of January 1, 2018, Room Designs, Inc. had a balance of $9,900 in Cash, $3,500 in Common Stock, and $6,400 in Retained Earnings. These were the only accounts with balances in the ledger on January...
-
Refer to Exercise 2-7 for the transactions of Yula's Yoga. Mar. 1 The business received a $15,000 cash investment from Yula Gregore to start Yula's Yoga. 1 Paid $4,000 cash to rent a yoga studio for...
-
Compute the missing amounts for each of the following businesses: Fraser Co. Delta Co. Pine Co. Beginning 350,000 200,000 $300,000 120,000 $540,000 360,000 Liabilities Ending $500,000 250,000...
-
The general ledger of Katie's Supplies includes the following accounts: Cash .................................................... 111 Inventory ........................................... 131 Prepaid...
-
The accounting records of the Happy Tickers Sports and Social Club are in a mess. You manage to find the following information to help you prepare the accounts for the year to 31 December 2015. (1)...
-
The Milham Theatre Club has been in existence for a number of years. Members pay an annual subscription of 15 which entitles them to join trips to professional productions at a reduced rate. On 1...
-
Place a tick in the appropriate column for each of the following cost items: (a) Purchases of raw materials (b) Direct wages (c) General factory expenses (d) Depreciation of machinery (e) Commission...
Study smarter with the SolutionInn App