| |
| 101 | Cash | 405 | Commissions Earned |
| 106 | Accounts Receivable | 612 | Depreciation ExpenseComputer Equip. |
| 124 | Office Supplies | 622 | Salaries Expense |
| 128 | Prepaid Insurance | 637 | Insurance Expense |
| 167 | Computer Equipment | 640 | Rent Expense |
| 168 | Accumulated DepreciationComputer Equip. | 650 | Office Supplies Expense |
| 209 | Salaries Payable | 684 | Repairs Expense |
| 307 | Common Stock | 688 | Telephone Expense |
| 318 | Retained Earnings | 901 | Income Summary |
| 319 | Dividends | | |
| |
Use the following information:
- Prepaid insurance of $156 has expired this month.
- At the end of the month, $500 of office supplies are still available.
- This months depreciation on the computer equipment is $500.
- Employees earned $390 of unpaid and unrecorded salaries as of month-end.
- The company earned $2,050 of commissions that are not yet billed at month-end.
Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts. 3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.
Reg 1 and 2 Req 3 Req 4 Adj Entries 101: Cash 106: Accounts receivable 124: Office supplies Req 4 Adj Trial Bal Account Title ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation-Computer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 319: Dividends 405: Commissions earned Req 5A 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total $ $ Debit Req 5B 101 x 1,300 2,800 40,000 500 x 390 X 2,100 2,050 x 500 x 1,300 x 2,800 x 2,200 800 x 300 1,050 58,191 Req 5C $ Credit 74,000 Req 6A $ 74,000 Req 6B GL Req 7 Req 4 Adj Trial Bal Prepare the income statement for the month of April 30. Req 1 and 2 Req 3 Revenues: Commissions earned Expenses: Salaries expense Rent expense Req 4 Adj Entries ADVENTURE TRAVEL Income Statement For Month Ended April 30 Telephone expense Depreciation expense-Computer equip. Office supplies expense Repairs expense Insurance expense Total expenses 3333333 Req 5A 622 x 640 X 688 x 612 x 650 x 684 x 637 x $ S Req 5B 18,050 x 4.533 13,517 Req 5C Req 6A Req 6B GL Req 7 Req 4 Adj Trial Bal Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30. Req 1 and 2 Req 4 Adj Entries Req 3 ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title 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. 319: Dividends 405: Commissions earned 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total Req 5A $ Debit 2,050 800 x Req 5B 500 x 390 X 800 4,540 $ Req 5C Credit 156 156 Req 6A Req 6B GL Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Adj Entries ADVENTURE TRAVEL Statement of Retained Earnings For Month Ended April 30 $ Retained earnings, April 1 Add: Net income Less: Dividends Retained earnings, April 30 Req 4 Adj Trial Bal $ X Answer is not complete. 0 9,769 9,769 2,400 7,369 Req 5A Prepare the statement of retained earnings for the month of April 30. (Amounts to be deducted should be entered with a minus sign.) Req 5B Req 5C Req 6A Req 6B GL Req 7 Req 1 and 2 Req 3 Req 4 Adj Entries Prepare the balance sheet at April 30. Salaries payable Common stock Req 4 Adj Trial Bal ADVENTURE TRAVEL Balance Sheet April 30 Assets Cash Accounts receivable Office supplies Prepaid insurance Computer equipment Accumulated depreciation-Computer equip. Total assets Liabilities Equity Req 5A $ Req 5B OO 0 0 Req 5C Req 6A Req 6B GL Req 7 Reg 1 and 2 Req 3 Req 4 Adj Entries 101: Cash 106: Accounts receivable 124: Office supplies Req 4 Adj Trial Bal Account Title ADVENTURE TRAVEL Unadjusted Trial Balance April 30 Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 128: Prepaid insurance 167: Computer equipment 168: Accumulated depreciation-Computer equipment 209: Salaries payable 307: Common stock 318: Retained earnings 319: Dividends 405: Commissions earned Req 5A 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total $ $ Debit Req 5B 101 x 1,300 2,800 40,000 500 x 390 X 2,100 2,050 x 500 x 1,300 x 2,800 x 2,200 800 x 300 1,050 58,191 Req 5C $ Credit 74,000 Req 6A $ 74,000 Req 6B GL Req 7 Req 4 Adj Trial Bal Prepare the income statement for the month of April 30. Req 1 and 2 Req 3 Revenues: Commissions earned Expenses: Salaries expense Rent expense Req 4 Adj Entries ADVENTURE TRAVEL Income Statement For Month Ended April 30 Telephone expense Depreciation expense-Computer equip. Office supplies expense Repairs expense Insurance expense Total expenses 3333333 Req 5A 622 x 640 X 688 x 612 x 650 x 684 x 637 x $ S Req 5B 18,050 x 4.533 13,517 Req 5C Req 6A Req 6B GL Req 7 Req 4 Adj Trial Bal Using adjusted account balances from Requirement 6b, prepare an adjusted trial balance as of April 30. Req 1 and 2 Req 4 Adj Entries Req 3 ADVENTURE TRAVEL Adjusted Trial Balance April 30 Account Title 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. 319: Dividends 405: Commissions earned 612: Depreciation expense-Computer equipment 622: Salaries expense 637: Insurance expense 640: Rent expense 650: Office supplies expense 684: Repairs expense 688: Telephone expense Total Req 5A $ Debit 2,050 800 x Req 5B 500 x 390 X 800 4,540 $ Req 5C Credit 156 156 Req 6A Req 6B GL Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Adj Entries ADVENTURE TRAVEL Statement of Retained Earnings For Month Ended April 30 $ Retained earnings, April 1 Add: Net income Less: Dividends Retained earnings, April 30 Req 4 Adj Trial Bal $ X Answer is not complete. 0 9,769 9,769 2,400 7,369 Req 5A Prepare the statement of retained earnings for the month of April 30. (Amounts to be deducted should be entered with a minus sign.) Req 5B Req 5C Req 6A Req 6B GL Req 7 Req 1 and 2 Req 3 Req 4 Adj Entries Prepare the balance sheet at April 30. Salaries payable Common stock Req 4 Adj Trial Bal ADVENTURE TRAVEL Balance Sheet April 30 Assets Cash Accounts receivable Office supplies Prepaid insurance Computer equipment Accumulated depreciation-Computer equip. Total assets Liabilities Equity Req 5A $ Req 5B OO 0 0 Req 5C Req 6A Req 6B GL Req 7
