Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you use my numbers please On April 1 , Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the

Can you use my numbers please
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 $34,000 cash and computer equipment worth $30,000 in the company.
April 3' The company rented furnished office space by paying $2,300 cash for the first month's (April) rent.
April 4 The company purchased $1,200 of office supplies for cash.
April 10 The company paid $2,400 cash for a 12-month insurance policy. Coverage begins on April 11.
April 14 The company paid $1,000 cash for two weeks' salaries earned by employees.
April 24 The company collected $10,500 cash for commissions revenue.
April 28 The company paid $1,000 cash for two weeks: salaries earned by employees.
April 29 The company paid $450 cash for minor repairs to computer equipment.
April 30 The company paid $950 cash for this month's telephone bill.
April 30 Nozomi withdrew $2,400 cash from the company for personal use.
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
209 Salaries Payable
301 J. Nozomi, Capital
302 J. Nozomi, Withdrawals
403 Commissions Revenue
612 Depreciation Expense-Computer Equipment
622 Salaries Expense
637 Insurance Expense
640 Rent Expense
650 Office Supplies Expense
684 Repairs Expense
688 Telephone Expense
901 Income Summary
Use the following information to prepare adjusting entries:
a. Prepaid insurance of $133 expired this month.
b. At the end of the month, $500 of office supplies are still available.
c. This month's depreciation on computer equipment is $300.
d. Employees earned $410 of unpaid and unrecorded salaries as of month-end.
e. The company earned $1,900 of commissions revenue that is not yet recorded at month-end.
Required:
& 2. Prepare journal entries to record the transactions for April and post them to ledger accounts in Req 6BGL tab. The company records prepaid and unearned items in balance sheet accounts.
Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.
Journalize the adjusting entries for the month, and then post to the ledger on Req 6B tab, using April 30 Adjusted as the date.
5a. Using adjusted account balances from Req 6B GL tab, prepare an adjusted trial balance as of April 30.
5b. Prepare the income statement for the month of April 30.
5c. Prepare the statement of owner's equity for the month of April 30.
5d. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary accounts and then post to Req 6BGL tab, using April 30 Close as the date.
6b. Post the journal entries to the ledger.
Prepare a post-closing trial balance.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

6th Edition

0324655231, 978-0324655230

More Books

Students also viewed these Accounting questions

Question

What is the typical stock price reaction to an SEO?

Answered: 1 week ago