Chapter 4 complete the accounting cycle

Problem4.13 A in your system

On June 1, 2020, Sam Near created a new travel agency called Tours-For-Less. These activities occurred during the companys first month:

June 1 Near created the new company by investing $40,000 cash, $5,000 of furniture, and computer equipment worth $60,000.

2 The company rented furnished office space by paying $3,200 rent for the first month.

3 The company purchased $2,400 of office supplies for cash.

10 The company paid $7,200 for the premium on a one-year insurance policy.

14 The owners assistant was paid $3,600 for two weeks salary.

24 The company collected $13,600 of commissions from airlines on tickets obtained for customers.

28 The assistant was paid another $3,600 for two weeks salary.

29 The company paid the months $3,500 phone bill. The company repaired its computer for $700 on account.

30 The owner withdrew $2,850 cash from the business for personal use.

The companys chart of accounts included these accounts:

101 Cash

106 Accounts Receivable

124 Office Supplies

128 Prepaid Insurance

160 Furniture

161 Accumulated Depreciation, Furniture

167 Computer Equipment

168 Accumulated Depreciation, Computer Equipment

201 Accounts Payable

209 Salaries Payable

301 Sam Near, Capital

302 Sam Near, Withdrawals

405 Commissions Revenue

610 Depreciation Expense, Furniture

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

Required :

1&2. Prepare journal entries to record the transactions for June and post them to the accounts. Set up in T-account Use the following information to journalize and post the adjustments for the month to T-Accounts given in the Part 1 & 2.

a. Two-thirds of one months insurance coverage was consumed.

b. There were $1,600 of office supplies on hand at the end of the month

c. Depreciation on the computer equipment was estimated to be $1,650 and $400 on the furniture.

d. The assistant had earned $320 of unpaid and unrecorded salary.

e. The company had earned $3,500 of commissions that had not yet been billed.

6. Prepare a post-closing trial balance. 1 TOURS-FOR-LESS Post-Closing Trial Balance June 30, 2020 Accounts Debit Credit Totals CSscanned with CamScanner 6. Prepare a post-closing trial balance. 1 TOURS-FOR-LESS Post-Closing Trial Balance June 30, 2020 Accounts Debit Credit Totals CSscanned with CamScanner