in the adventure trail, how did they come up with the cash balance of 33450? did they add something together or subtract from something

Question 1: (99 points) Problem 4-2A: Applying the accounting cycle L.O. C1, C2, P2, P3 On April 1, 2008, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month: April 1 Nozomi invested $38,000 cash and computer equipment worth $35,000 in the business. 2 Rented furnished office space by paying $2,600 cash for the first month's (April) rent. 3 Purchased $1,500 of office supplies for cash. 10 Paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 Paid $1,300 cash for two weeks' salaries earned by employees. 24 Collected $8,000 cash on commissions from airlines on tickets obtained for customers. 28 Paid another $1,600 cash for two weeks' salaries earned by employees. 29 Paid $400 cash for minor repairs to the company's computer. 30 Paid $1,250 cash for this month's telephone bill. 30 Nozomi withdrew $1,500 cash for personal use. The company's chart of accounts follows: 101 Cash 405 Commissions Earned 106 Accounts Receivable 612 Depreciation ExpenseComputer 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated DepreciationComputer Equip. 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 301 J. Nozomi, Capital 688 Telephone Expense 302 J. Nozomi, Withdrawals 901 Income Summary Requirement 1: Offline (not submitted or graded in this system) Use the balance column format to set up each ledger account listed in its chart of accounts. Requirement 2: Prepare journal entries to record the transactions for April. The company records prepaid and unearned items in balance sheet accounts. (Omit the "$" sign in your response.) Date April 1 General Journal Debit Credit 38000 35000 73000 April 2 2600 2600 April 3 1500 1500 April 10 2400 2400 April 14 1300 1300 April 24 8000 8000 April 28 1600 1600 April 29 400 400 April 30 1250 1250 1500 April 30 1500 Requirement 3: Prepare an unadjusted trial balance as of April 30. (Please prepare your trial balance in chart of account order. Omit the "$" sign in your response. Leave no cells blank. Leave no cells blank - be certain to enter "0" wherever required.) ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2008 Account Title Debit $ 33450 Credit $ 0 0 0 2400 0 1500 0 35000 0 0 0 0 0 Totals $ 0 73000 1500 0 0 8000 0 0 0 0 0 0 2600 0 400 0 2900 0 1250 0 81000 $ 81000 Requirement 4: Use the following information to journalize and post adjusting entries for the month (Omit the "$" sign in your response): a. Two-thirds of one month's insurance coverage has expired. b. At the end of the month, $500 of office supplies are still available. c. This month's depreciation on the computer equipment is $600. d. Employees earned $560 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,650 of commissions that are not yet billed at month-end. Adjustment (a): Date General Journal Apr. 30 Debit Credit 133 133 Adjustment (b): Date General Journal Apr. 30 Debit Credit 1000 1000 Adjustment (c): Date General Journal Debit Credit 600 Apr. 30 600 Adjustment (d): Date Apr. 30 General Journal Debit Credit 560 560 Adjustment (e): Date General Journal Debit Credit 1650 Apr. 30 1650 Requirement 5: Prepare the income statement and the statement of owner's equity for the month of April and the balance sheet at April 30, 2008. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2008 Revenues $ Expenses $ 3460 133 1000 400 9650 2600 1250 600 Total Expenses 9443 207 $ ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30, 2008 $ 0 73000 : 207 73207 Sub-Total 1500 : $ 71707 ADVENTURE TRAVEL Balance Sheet April 30, 2008 Assets Liabilities $ 33450 $ 560 1650 500 2267 Computer equipment $ Less: Accd. Depreciation ( Total assets 35000 600 Equity 34400 ) $ 72267 71707 Total liabilities and equity Requirement 6: Prepare journal entries to close the temporary accounts and post these entries to the ledger. (Omit the "$" sign in your response.) i. Closing entry for Revenue: Date April 30 General Journal Debit Credit 9650 9650 ii. Closing entry for Expense: $ 72267 Date General Journal Debit Credit 9443 April 30 2600 400 600 1250 1000 3460 133 iii. Closing entry for Income Summary: Date General Journal Debit Credit 207 April 30 207 iv. Closing entry for Withdrawals: Date April 30 General Journal Debit 1500 Credit 1500 Requirement 7: Prepare a post-closing trial balance. (Please prepare your trial balance in chart of account order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) ADVENTURE TRAVEL Post-Closing Trial Balance April 30, 2008 Debit $ 33450 Credit $ 1650 0 500 0 2267 0 35000 0 0 Totals $ 0 600 0 560 0 71707 72867 $ 72867 Hint 1 | Hint 2 | Hint 3 | Hint 4 Question 1: Score 99/99 Your response Problem 4-2A: Applying the accounting cycle L.O. C1, C2, P2, P3 On April 1, 2008, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month: April 1 Nozomi invested $38,000 cash and computer equipment worth $35,000 in the business. 2 Rented furnished office space by paying $2,600 cash for the first month's (April) rent. 3 Purchased $1,500 of office supplies for cash. 10 Paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. 14 Paid $1,300 cash for two weeks' salaries earned by employees. 24 Collected $8,000 cash on commissions from airlines on tickets obtained for customers. 28 Paid another $1,600 cash for two weeks' salaries earned by employees. 29 Paid $400 cash for minor repairs to the company's computer. 30 Paid $1,250 cash for this month's telephone bill. 30 Nozomi withdrew $1,500 cash for personal use. The company's chart of accounts follows: 101 Cash 405 Commissions Earned 106 Accounts Receivable 612 Depreciation ExpenseComputer 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated DepreciationComputer Equip. 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 301 J. Nozomi, Capital 688 Telephone Expense 302 J. Nozomi, Withdrawals 901 Income Summary Requirement 1: Offline (not submitted or graded in this system) Use the balance column format to set up each ledger account listed in its chart of accounts. Requirement 2: Prepare journal entries to record the transactions for April. The company records prepaid and unearned items in balance sheet accounts. (Omit the "$" sign in your response.) Date April 1 General Journal Debit Credit Cash (2%) 38000 (2 Computer Equipment (2%) 35000 (2 J. Nozomi, Capital (2%) %) %) 73000 (2 %) April 2 Rent Expense (2%) 2600 (2%) Cash (2%) April 3 Office Supplies (2%) 2600 (2%) 1500 (2%) Cash (2%) April 10 Prepaid Insurance (2%) 1500 (2%) 2400 (2%) Cash (2%) April 14 Salaries Expense (2%) 2400 (2%) 1300 (2%) Cash (2%) April 24 Cash (2%) 1300 (2%) 8000 (2%) Commissions Earned (2%) April 28 Salaries Expense (2%) 8000 (2%) 1600 (2%) Cash (2%) April 29 Repairs Expense (2%) 1600 (2%) 400 (2%) Cash (2%) April 30 Telephone Expense (2%) 400 (2%) 1250 (2%) Cash (2%) April 30 1250 (2%) J. Nozomi, Withdrawals (2%) 1500 (2%) Cash (2%) 1500 (2%) Your response Requirement 3: Prepare an unadjusted trial balance as of April 30. (Please prepare your trial balance in chart of account order. Omit the "$" sign in your response. Leave no cells blank. Leave no cells blank - be certain to enter "0" wherever required.) ADVENTURE TRAVEL Unadjusted Trial Balance April 30, 2008 Account Title Cash (2%) Accounts receivable (2%) Prepaid Insurance (2%) Debit $ Credit 33450 ( $ 0 (2%) 2%) 0 (2%) 0 (2%) 2400 (2 0 (2%) %) Office Supplies (2%) 1500 (2 0 (2%) %) Computer Equipment (2%) 35000 ( 2%) 0 (2%) Accumulated DepreciationComputer Equipment (2%) 0 (2%) Salaries payable (2%) 0 (2%) 0 (2%) J. Nozomi, Capital (2%) 0 (2%) 73000 ( 1500 (2 0 (2%) J. Nozomi, Withdrawals (2%) 0 (2%) 2%) %) Commissions Earned (2%) 0 (2%) 8000 (2 Office Supplies Expense (2%) 0 (2%) 0 (2%) Depreciation Expense-Computer Equipment (2%) 0 (2%) Insurance Expense (2%) 0 (2%) 0 (2%) 2600 (2 0 (2%) Rent Expense (2%) %) 0 (2%) %) Repairs Expense (2%) 400 (2%) 0 (2%) Salaries Expense (2%) 2900 (2 0 (2%) %) Telephone Expense (2%) 1250 (2 0 (2%) %) Totals $ Your response 81000 ( 2%) $ 81000 ( 2%) Requirement 4: Use the following information to journalize and post adjusting entries for the month (Omit the "$" sign in your response): a. Two-thirds of one month's insurance coverage has expired. b. At the end of the month, $500 of office supplies are still available. c. This month's depreciation on the computer equipment is $600. d. Employees earned $560 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,650 of commissions that are not yet billed at month-end. Adjustment (a): Date Apr. 30 General Journal Insurance Expense (5%) Debit Credit 133 (5%) Prepaid Insurance (5%) 133 (5%) Adjustment (b): Date Apr. 30 General Journal Office Supplies Expense (5%) Debit Credit 1000 (5%) Office Supplies (5%) 1000 (5%) Adjustment (c): Date Apr. 30 General Journal Depreciation Expense-Computer Equipment (5%) Accumulated Depreciation-Computer Equipment (5%) Debit Credit 600 (5%) 600 (5%) Adjustment (d): Date Apr. 30 General Journal Debit Salaries Expense (5%) Credit 560 (5%) Salaries Payable (5%) 560 (5%) Adjustment (e): Date Apr. 30 General Journal Debit Accounts Receivable (5%) Credit 1650 (5%) Commissions Earned (5%) 1650 (5%) Your response Requirement 5: Prepare the income statement and the statement of owner's equity for the month of April and the balance sheet at April 30, 2008. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) ADVENTURE TRAVEL Income Statement For Month Ended April 30, 2008 Revenues Commissions Earned (2%) $ Expenses Salaries Expense (2%) Insurance Expense (2%) $ 3460 (2%) 133 (2%) 9650 (2%) Office Supplies Expense (2%) 1000 (2%) Repairs Expense (2%) 400 (2%) Rent Expense (2%) 2600 (2%) Telephone Expense (2%) 1250 (2%) Depreciation Expense-Computer Equipment (2%) 600 (2%) 9443 (2%) Total Expenses Net Income (2%) $ ADVENTURE TRAVEL Statement of Owner's Equity For Month Ended April 30, 2008 J. Nozomi, Capital, April 1, 2008 (2%) Add (2%): $ 0 (2%) 73000 ( Owner investments (2%) 2%) Net income (2%) 207 (2%) Sub-Total 73207 ( Less (2%): 2%) 1500 (2 Owner withdrawals (2%) J. Nozomi, Capital, April 30, 2008 (2%) %) $ 71707 ( 2%) 207 (2%) ADVENTURE TRAVEL Balance Sheet April 30, 2008 Assets Liabilities Cash (2%) $ Accounts Receivable (2% 33450 (2%) Salaries Payable (2%) $ 560 (2%) 1650 (2%) ) Office Supplies (2%) 500 (2%) Prepaid Insurance (2%) 2267 (2%) Computer equipment Less: Accd. Depreciation $ ( Total assets 35000 (2%) Equity 600 (2%) ) $ 34400 (2%) J. Nozomi, Capital (2%) 72267 (2%) Total liabilities and equity 71707 (2%) $ 72267 (2%) Your response Requirement 6: Prepare journal entries to close the temporary accounts and post these entries to the ledger. (Omit the "$" sign in your response.) i. Closing entry for Revenue: Date April 30 General Journal Commissions Earned (4%) Debit Credit 9650 (4%) Income Summary (4%) 9650 (4%) ii. Closing entry for Expense: Date April 30 General Journal Income Summary (4%) Debit Credit 9443 (4%) Rent Expense (4%) 2600 (4%) Repairs Expense (4%) 400 (4%) Depreciation Expense-Computer Equipment (4%) 600 (4%) Telephone Expense (4%) 1250 (4%) Office Supplies Expense (4%) 1000 (4%) Salaries Expense (4%) 3460 (4%) Insurance Expense (4%) 133 (4%) iii. Closing entry for Income Summary: Date April 30 General Journal Income Summary (4%) J. Nozomi, Capital (4%) iv. Closing entry for Withdrawals: Debit Credit 207 (4%) 207 (4%) Date April 30 General Journal J. Nozomi, Capital (4%) Debit Credit 1500 (4%) J. Nozomi, Withdrawals (4%) Your response 1500 (4%) Requirement 7: Prepare a post-closing trial balance. (Please prepare your trial balance in chart of account order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) ADVENTURE TRAVEL Post-Closing Trial Balance April 30, 2008 Debit Cash (4%) Accounts Receivable (4%) $ Credit 33450 ( 4%) 1650 (4 $ 0 (4%) 0 (4%) %) Office Supplies (4%) 500 (4%) 0 (4%) Prepaid Insurance (4%) 2267 (4 0 (4%) %) Computer Equipment (4%) 35000 ( 0 (4%) 4%) Accumulated DepreciationComputer Equipment (4%) 0 (4%) Salaries Payable (4%) 0 (4%) 560 (4%) J. Nozomi, Capital (4%) 0 (4%) 71707 ( 600 (4%) 4%) Totals 72867 ( 72867 (