Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On April 1, 2017, Kay Wright created a new travel agency, Wright Travel. The following transactions occurred during the company's first month. Apr. 1 Wright

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On April 1, 2017, Kay Wright created a new travel agency, Wright Travel. The following transactions occurred during the company's first month. Apr. 1 Wright invested $36,000 cash and computer equipment worth $17,400 in the company in exchange for common stock. Apr. 2 The company rented furnished office space by paying $2,000 cash for the first month's (April) rent. Apr 3 The company purchased $1,800 of office supplies for cash. Apr. 10 The company paid $3,240 cash for the premium on a 12 month insurance policy. Coverage begins on April 11. Apr. 14 The company paid $2,100 cash for two weeks' salaries earned by employees. Apr. 24 The company collected $12,000 cash on comissions from airlines on tickets obtained for customers. Apr. 28 The company paid $2,100 cash for two weeks salaries earned by employees. Apr. 29 The company paid $800 cash for minor repairs to the company's computer. Apr. 30 The company paid $550 cash for this month's telephone bill. Apr. 30 The company paid $2,100 cash in dividends. Information for month-end adjustments follows: a. Two-thirds (or $180) of one month's insurance coverage has expired. b. At the end of the month $1,100 of office supplies are still available. c. This month's depreciation on the computer equipment is $290, d. Employees earned $840 of unpaid and unrecorded salaries as of month-end. e. The company earned $1,830 of commissions that are not yet billed at month-end, Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Post Closing Prepare the required journal entries, adjusting entries, and closing entries for Wright Travel 1 Wright invested $36,000 cash and computer equipment worth $17,400 in the company in exchange for common stock. 2 The company rented furnished office space by paying $2,000 cash for the first month's (April) rent. 3 The company purchased $1,800 of office supplies for cash. The company's policy is to initially record all prepaid and unearned items in balance sheet accounts. The company paid $3,240 cash for the premium on a 12- month insurance policy. Coverage begins on April 11. The company's policy is to initially record all prepaid and unearned items in balance sheet accounts. Note : = journal entry has been entered 5 The company paid $2,100 cash for two weeks' salaries earned by employees. Imm - 6 The company collected $12,000 cash on commissions from airlines on tickets obtained for customers. The company paid $2,100 cash for two weeks' salaries earned by employees. 8 The company paid $800 cash for minor repairs to the company's computer. 9 The company paid $550 cash for this month's telephone bill. 10 The company paid $2,100 cash in dividends. 11 Two-thirds (or $180) of one month's insurance coverage has expired. Record the required adjusting entry, if any. 12 At month-end, $1,100 of supplies are still available. Record the required adjusting entry, if any. 13 This month's depreciation on the computer is $290. Record the required adjusting entry, if any. 13 This month's depreciation on the computer is $290. Record the required adjusting entry, if any. 14 Employees earned $840 of unpaid and unrecorded salaries as of month-end. Record the required adjusting entry, if any. 15 The company earned $1,830 of commissions that are not yet billed at month-end. Record the required adjusting entry, if any. 16 Record the entry to close the revenue account(s). 17 Record the entry to close the expense account(s)

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

Statistical Audit Automation The Principles Of Statistical Sampling Of Business Accounts

Authors: Nathan Poeschl

1st Edition

B0B17YP1SR, 979-8829041991

More Books

Students also viewed these Accounting questions

Question

e. What difficulties did they encounter?

Answered: 1 week ago