Question
April 1, 2013, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month. April 1 Nozomi invested
| April 1, 2013, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month. |
| April | 1 | Nozomi invested $30,000 cash and computer equipment worth $20,000 in the company in exchange for common stock. | |
| 2 | The company rented furnished office space by paying $1,800 cash for the first month's (April) 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 policy. Coverage begins on April 11. | ||
| 14 | The company paid $1,600 cash for two weeks' salaries earned by employees. | ||
| 24 | The company collected $8,000 cash on commissions from airlines on tickets obtained for customers. | ||
| 28 | The company paid $1,600 cash for two weeks' salaries earned by employees. | ||
| 29 | The company paid $350 cash for minor repairs to the company's computer. | ||
| 30 | The company paid $750 cash for this month's telephone bill. | ||
| 30 | The company paid $1,500 cash for dividends. |
| The company's chart of accounts follows: |
| 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: |
| a. | Two-thirds (or $133) of one months insurance coverage has expired. |
| b. | At the end of the month, $600 of office supplies are still available. |
| c. | This months 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. Prepare the balance sheet at April 30, 2013 Prepare journal entries to close the temporary accounts and then post to section 6.2 .Prepare a post-closing trial balance. (Please prepare your trial balance in chart of accounts order given in the question.) |
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The Training And Development Audit
Authors: Rosemary Harrison
2nd Edition
0955970725, 978-0955970726
