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On April 1, 2018, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month. April 1 Nozomi
On April 1, 2018, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the companys first month.
April | 1 | Nozomi invested $39,000 cash and computer equipment worth $30,000 in the company in exchange for common stock. | ||
2 | The company rented furnished office space by paying $2,800 cash for the first months (April) rent. | |||
3 | The company purchased $1,800 of office supplies for cash. | |||
10 | The company paid $2,300 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. | |||
14 | The company paid $1,000 cash for two weeks' salaries earned by employees. | |||
24 | The company collected $13,000 cash on commissions from airlines on tickets obtained for customers. | |||
28 | The company paid $1,000 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 $950 cash for this month's telephone bill. | |||
30 | The company paid $1,800 cash in 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:
- Two-thirds (or $128) of one months insurance coverage has expired.
- At the end of the month, $800 of office supplies are still available.
- This months depreciation on the computer equipment is $300.
- Employees earned $490 of unpaid and unrecorded salaries as of month-end.
- The company earned $2,300 of commissions that are not yet billed at month-end.
MAKE JOURNAL ENTRIES FOR BELOW TRANSACTIONS
- Nozomi invested $39,000 cash and computer equipment worth $30,000 in the company in exchange for common stock.
- The company rented furnished office space by paying $2,800 cash for the first month's (April) rent.
- The company purchased $1,800 of office supplies for cash.
- The company paid $2,300 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.
- The company paid $1,000 cash for two weeks' salaries earned by employees.
- The company collected $13,000 cash on commissions from airlines on tickets obtained for customers.
- The company paid $1,000 cash for two weeks salaries earned by employees.
- The company paid $350 cash for minor repairs to the company's computer.
- The company paid $950 cash for this month's telephone bill.
- The company paid $1,800 cash in dividends.
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