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Although the textbook says use the balance column format, Im required to use T-ACCOUNTs There is a typo in the first picture. it is April
Although the textbook says use the balance column format, Im required to use T-ACCOUNTs
There is a typo in the first picture. it is April 1,2017 not 2015. everything else is accurate.
The following information applies to the questions displayed below] On Apri 1, 2015, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month April 1 Nozoml Invested $30,000 cash and computer equipment worth $20.000 in the company in exchange for common stock 2 The company rented furnished office spece by paying $1,800 cash for the first month's (Apri) rent 3 The company purchased $1,000 of office supplies for cash 10 The company paid $2.400 cash for the premium on a 12-month insurance polcy Coverage begins on April 11. 14 The company pald $1,600 cash for two weeks' salaries eamed by employees 24 The company collected $8.000 cosh on commissions from arlines on tickets obtained for customers 28 The company paid $1,600 cash for two weeks salaries eamed by employees 29 The company pald S350 cash for minor repairs to the company's computer 30 The company paid $750 cash for this month's telephone bli 30 The company paid $1.500 cosh in dividends The company's chart of accounts follows 101 Cash 06 Accounts Receivable 124 Office Supplies 128 Prepaid Insurance 167 Computer Equipment 168 Accumulated Depreciation- Computer Equip. 650 Office Supplies Expense 209 Salaries Payable 301 J. Nozomi, Capitol 302 J. Nozomi, Withdrawals 405 Commissions Earned 612 Depreciation Expense- Computer Equip. 622 Salaries Expense 637 Insurance Expense 640 Rent Expense 684 Repairs Expense 688 Telephone Expense 901 Income Summary Required 1. Use the balance column format to set up each ledger account listed in its chart of accounts. 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts. 3. Prepare an unadjusted trial balance as of April 30 Check (3) Unadj. trial balance totals, $58,000 4. Use the following information to journalize and post adjusting entries for the month: a. Two-thirds (or $133) of one month's insurance coverage has expired 4o) Dr. Insurance Expense, $133 b. At the end of the month, $600 of office supplies are still available. e. This month's depreciation on the computer equipment is $500 d. Employees earned $420 of unpaid and unrecorded salaries as of month-end e. The company earned $1,750 of commissions that are not yet billed at month-end. 5. Prepare the adjusted trial balance as of April 30. Prepare the income statement and the statement of owner's equity for the month of April and the balance sheet at April 30, 2017 (5) Net income, $2.197, J. Nozomi, Capital (4/30/2017),$50,697 Total assets, $51,117 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger 7. Prepare a post-closing trial balance. ) p. trial balance totals, S51.617 Step by Step Solution
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